CR BOLZANO LOAN FOR SME & MIDCAPS II

The loan facility will finance projects promoted by small and medium-sized enterprises (SMEs) and mid-caps in Italy. At least 70% of the loan will be allocated to SMEs investments, while at least 40% of the facility will be dedicated to Climate Action and Environmental Sustainability projects.

The aim is to finance eligible small/medium projects carried out by the final beneficiaries.

The Loan will be dedicated to SMEs (at least 70%) and Midcaps (up to 30%). The facility addresses an important market failure that is SMEs' access to finance, which is driven by asymmetric information.

The project is expected to contribute minimum 40% to Climate Action & Environmental Sustainability (CA&ES) investments to increase available financing dedicated to small renewable energy projects (mainly based on solar technology), and energy efficiency projects.

Through this operation additional resources will be channelled to finance eligible investments promoted by SMEs and Midcaps: the additional lending capacity provided through the EIB's intervention will generate positive effects on investments from the availability of long term financing and of overall lower financing costs and will send a positive signal to the market regarding their financial soundness and credit worthiness. The proposed loan is fully consistent with the EU objectives and responds to the definition of SME financing as a strategic priority objective of the Bank.

The operation will also support the EU's and the Bank's priority objectives in the energy sector and the EIB's climate action objectives through the development of renewable energy projects and the implementation of energy efficiency projects. Therefore, it will also contribute to Italy's 2030 decarbonisation targets of the 2030 National Energy and Climate Plan.

The operation will address the following market failures: i) asymmetric information, related to the constrained access to finance of SMEs and Midcaps including for their green transition, ii) carbon and air pollution externalities through the deployment of renewable energy and increase in energy efficiency. 

In terms of project results, the project has an economic rate of return rated as very good, and is expected to generate a positive broader social benefit. The operation is eligible under Article 309(c) projects of common interest (energy efficiency, renewable energy), tackling climate change.

The projects will be supported by adequate governance and capabilities of the Borrower, which is considered sound and has a successful track record of implementing EIB CAES financing. The operation enhances the access to finance of final beneficiaries, generating positive effects on investments from the availability of long-term financing to overall lower financing costs

The operation falls within the scope of the EIB's Environmental and Social Standards - "Standard 11 Intermediated Finance". The Borrower / Financial Intermediary has adequate capacity, systems and processes in place for identifying, assessing, managing and monitoring environmental, climate and social (ECS) risks related to the potential sub-projects benefitting from EIB support. The Final beneficiaries will be required to comply with applicable national and EU legislation in respect of environmental and social matters, as appropriate.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.