The European Investment Bank (EIB) and Italy state lender Cassa Depositi e Prestiti (CDP) have announced an agreement to strengthen their cooperation to promote public sector investment in key sectors of the Italian economy.

“Up to €1 billion in new funds will support sustainable regional growth and public sector investment in various sectors with a positive impact on environmental sustainability, social cohesion, and development in the south of the country,” said the EIB.

“In concrete terms, the EIB will guarantee loans totalling up to €500 million granted by CDP to Italian regions, making it possible for Cassa Depositi e Prestiti to provide public sector bodies with loans up to double this amount (totalling up to €1 billion) over the next five years.

“The new funds will help foster economic development in central and southern Italy – including in the areas hit by the 2016 central Italian earthquake – and will support projects aiming to mitigate climate change, improve resilience to adverse weather events and promote social cohesion.

“This new agreement strengthens the already sound working relationship between the EIB and CDP to support the public sector. This is the second guarantee agreement between the EIB and CDP following that signed in 2022. The previous agreement aimed to promote economic growth and accelerate the green transition of public sector bodies on the ground.”