Release date: 12 January 2024
Promoter – Financial Intermediary
ICCREA BANCA SPA - ISTITUTO CENTRALE DEL CREDITO COOPERATIVOLocation
Description
The operation consists in a purchase of part of ICCREA covered bond issuance.
Additionality and Impact
The project supports the financing of small-scale investments carried out by SMEs and Midcaps in Italy. Up to 25% of the facility will be dedicated to SMEs making small-scale investments contributing towards R&D and to innovative SMEs also in the framework of the New Sabatini law and Transizione 4.0 National Plan launched by the Italian government to foster the competitiveness of Italian SMEs. The uncertainties in the global economy due to the pandemic, the war in Ukraine, inflation, the energy crisis, and rising interest rates have exacerbated the difficulties that SMEs and Mid-caps and especially innovative companies experienced in accessing cost-effective, long-term finance, a well-known market failure. By generating additional lending capacity, the proposed operation supports investments in capacity expansion, productive assets and innovation undertaken by SMEs and Mid-Caps in Italy. Hence, the project improves SMEs' and Mid-caps' access to finance and access to innovation finance. These features together contribute to maintaining existing jobs, creating new jobs, and sustaining growth. The Financial Intermediary is specialized in SME finance, has a wide network and thereby ensures high market reach for EIB financing.
The EIB involvement is expected to generate positive effects, mainly in terms of availability of long term loans to SMEs and/or overall financing costs, which will be particularly appreciated by SMEs beneficiaries. 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.
Objectives
The transaction aims to enhance access to finance to small and medium sized enterprises (SMEs) and mid-caps in Italy. 25% of the operation supports innovation to foster sustainable economic growth.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 200 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 - 5/03/2024
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).