BE LOAN FOR SMES - GENDER EQUALITY AND REFUGEES

Promoter – Financial Intermediary

BANCA POPOLARE ETICA SCPA

Location

• Italy

Description

The Multi-Beneficiary Intermediated Loan (MBIL) will support eligible investments carried out by small and medium sized enterprises (SMEs) and mid-caps in Italy.

Additionality and Impact

The operation eases financial constraints for SMEs and Mid-Caps in Italy and is expected to also support gender equality as well as those final beneficiaries that ultimately support refugees, to live in dignity in reception centres and/or integrate to the host communities through employment and entrepreneurship. It will also strengthen EU's economic, social and territorial cohesion. The operation addresses the failure in financial markets for SMEs and Mid-Caps arising from limited access and/or high cost of financing charged by creditors as a result of information asymmetries, lack of collateral and imperfect screening and monitoring. The operation is expected to also generate positive externalities benefitting the society at large and the broader economy through supporting gender equality, refugees and cohesion regions. Through an intermediated approach, the Bank will provide financing with favourable terms to final beneficiaries which could not be reached otherwise and give a strong signal to the market for availability of financing for social projects. Additionally, since it's the first operation with Banca Etica, with a focus on refugees, gender equality and cohesion regions, the intermediary will also be offered non-financial support throughout implementation to deal with the specificities of the operation.

Objectives

The aim is to enhance access to finance to the target beneficiaries carrying out projects fulfilling three targets: (i) at least 30% should finance projects that benefit refugees; (ii) at least 30% should finance projects that improve gender equality; (iii) at least 30% of the sub-projects should be located in cohesion regions.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 60 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 - 27/06/2024