CDP EGF ENHANCED MIDCAP SUPPORT

Promoter – Financial Intermediary

CASSA DEPOSITI E PRESTITI

Location

• Italy

Description

Operation under the European Guarantee Fund (EGF) to support small and medium-sized enterprises (SMEs) (indirectly), mid-caps and large corporates affected by the COVID-19 pandemic in Italy.

Additionality and Impact

In line with the approved financial structures, the proposed operation is a full delegation unfunded linked risk-sharing guarantee with the Italian National Promotional Bank, Cassa Depositi e Prestiti S.p.A. ("CDP"), as Financial Intermediary and guarantee taker.
The linked risk sharing instrument aims at improving access to finance for companies through CDP's capital relief and loss protection for portfolios of newly originated eligible transactions, as well as to alleviate limits on individual obligors/sectors. Therefore, the proposed operation while enhancing CDP's lending capacity will facilitate access to finance by the final recipients at typically beneficial terms in the form of reduced interest rates, longer maturities and/or lower collateral requirements.
Liquidity needs are urgent and have become a matter of survival for millions of entities throughout Europe, that are facing financial difficulties as a result of the current economic crisis. The need for policy support towards liquidity and credit/guarantee will persist far beyond the immediate sanitary emergency, before entities can refocus their business and resume investment. Linked risk sharing operations undertaken by the EIB group and supported by the EGF are not only compatible with the measures of the ECB, EC and national regulators, they are also uniquely coupled to the provision of new eligible financing to target beneficiaries.

Objectives

Operation under the European Guarantee Fund (EGF) to support small and medium-sized enterprises (SMEs), mid-caps and large corporates in sectors that are in line with the EIB's long-term mission (SME and mid-cap support, innovation, and environment) and are affected by the COVID-19 pandemic.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 600 million

Total cost (Approximate amount)

EUR 1960 million

Environmental aspects

The EIB will require that Cassa Depositi e Prestiti S.p.A. takes all the required measures to ensure that final recipients (SMEs and mid-caps) meet the EIB's environmental standards and related EU/national legislation.

Procurement

The EIB will require that Cassa Depositi e Prestiti S.p.A. takes all the required measures to ensure that final recipients (SMEs and mid-caps) meet the EIB's procurement standards and related EU/national legislation.

Status

Signed - 13/07/2021