The European Investment Bank (EIB) and UBI Banca Group recently signed a EUR 50 million agreement to finance Italian SMEs and midcaps operating in the agrifood sector. Under this agreement, projects in agriculture and related sectors, including forestry, fisheries and food production, will be financed.

Against the backdrop of the strong relationship between the EIB and UBI Banca Group, this initiative is designed to further consolidate the support provided to Italy's productive sector and help launch the process of reviving the Italian economy. The agrifood sector is one of the pillars of the Italian economy with a turnover of over EUR 240 billion, equivalent to around 15% of the country's GDP (including the processing, retailing and catering industries).

The entire cost of each project may be financed, up to an amount of EUR 12.5 million.

Loans may be requested with a maximum term of 15 years for agro-industrial and agritourism property investments and 12 years for other projects. The agreement comes under the new EUR 400 million credit facility “Loan for Agriculture SMEs & Midcaps” approved in April by the EU bank.

The UBI Group will be responsible for selecting the projects and disbursing the loans to companies applying for them over the coming months. Applications may also be submitted by farming cooperatives.

The UBI Group will also make funds available to companies in addition to the EUR 50 million provided by the EIB, which will increase the aggregate ceiling for the agrifood sector.