ISP EGF ENHANCED SUPPLY CHAIN SUPPORT

Promoter – Financial Intermediary

INTESA SANPAOLO SPA

Location

• Italy

Description

Reverse factoring operation under the European Guarantee Fund (EGF) of trade payables of Italian corporates and mid-caps, improving access to finance of their mainly small and medium-sized enterprise (SME) suppliers, but possibly also mid-caps and large corporates.

Additionality and Impact

Access to finance has become a critical issue as a result of the COVID19 crisis, due to both a rapid increased demand and rising constraints on the side of the intermediary banks. These constraints are idiosyncratic and only partly addressed, e.g. through exceptional measures introduced by the ECB which is providing unprecedented amounts of liquidity support in the Euro area countries
Supply chain finance allows companies, especially SMEs and Midcaps, to unlock funds. Due to the pandemic, SMEs face increasing pressure to meet short-term financing needs and supply chain finance represents a competitive and suitable financing solution. It is initiated by the buyers that receive goods or services in order to help their suppliers to secure the financing of receivables at favourable terms.
The proposed operation is a linked risk sharing instrument under the Pan-European Guarantee Fund (EGF) between the EIB and ISP aimed at improving access to finance of mainly SME suppliers (estimated to represent up to 80% of the portfolio), but possibly also Midcaps (c. 20% of the portfolio) and to only a limited extent Large Corporates (the suppliers) of eligible non-SME buyers (the buyers) located in Italy through a reverse factoring platform, to foster access to liquidity and economic recovery.
Through this instrument, suppliers receive prompt payment for their goods and/or services and are able to maintain a healthy financial position while the buyer benefits from a consistent high level service/provision of goods and ensures the survival of relevant, even if typically small, business partners.

Objectives

The operation will allow an increase in the reverse factoring volumes available for suppliers to identified mid-cap and large corporate buyers enabling access to finance at favourable financing conditions for SME and mid-cap final beneficiaries.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 750 million

Total cost (Approximate amount)

EUR 16800 million

Environmental aspects

The EIB will require that Intesa Sanpaolo S.p.A. take 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 Intesa Sanpaolo S.p.A. take 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 - 17/06/2021