ISP LOAN TO MIDCAPS FOR R&D AND INNOVATION

Promoter – Financial Intermediary

INTESA SANPAOLO SPA

Location

• Italy

Description

The operation consists of a loan to Intesa Sanpaolo to support mid-caps in Italy. A 30% will contribute to innovation, in line with "Transition 4.0", the Italian government's programme.

Additionality and Impact

The uncertainties in the global economy due to the pandemic, the war in Ukraine, energy crisis, and rising interest rates have exacerbated the known difficulties that Mid-caps and especially innovative Mid-caps experienced in accessing cost-effective, long-term finance. These difficulties arise from the smaller scale of activities, uncertainties in the market and inherent riskiness of innovation activities leading to lower rates of return and higher risk of failure. The EIB financing would help Mid-caps to alleviate the immediate negative effects of the economic uncertainties by offering financing to strengthen their competitiveness and build-up their future resilience through the investments in capital goods, RDI and digitalization. The project will support existing jobs, creation of new jobs and growth through investments in productive assets and innovation in Italy, which is lagging behind its EU peers in technological development and digitalization. The Financial Intermediary, which has long experience in allocating EIB financing, will benefit from bespoke financing terms, such as flexible drawdowns that adapt to the underlying loan to the Mid-cap.

Objectives

The aim is to enhance access to finance to the target beneficiaries.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 300 million

Total cost (Approximate amount)

not applicable

Environmental aspects

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

Procurement

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

Status

Signed - 26/07/2023