Italian ethical finance bank Banca Etica and the European Investment Fund (EIF) have signed a new guarantee agreement that will help unlock investments in Italy and Spain worth over €200 million.
The EIF, with the support of InvestEU, said it will provide guarantees totalling €164 million to Banca Etica, helping to unlock investments in the “real economy” worth over €200 million.
“The final beneficiaries will be social enterprises, micro, small and medium-sized enterprises and small mid-caps,” said the EIF.
“The focus will be on promoting an ethical finance model that centres on collective well-being and sustainability.
“This will include projects that support highly socially oriented investments, while also promoting environmental sustainability and cultural, creative and training initiatives.
“The EIF estimates that, thanks to this agreement, more than 1,000 businesses will be able to access new loans on favourable terms.”
The agreement follows the €60 million agreement signed between the EIB and Banca Etica in July 2024, which aims to promote labour market integration and better services for refugees, making it easier for women-led companies to access finance, and support projects in cohesion regions.
“This agreement further consolidates the partnership between the EIB Group and Banca Etica with the shared goal of supporting an economy that focuses on people and social inclusion,” said EIB Vice-President Gelsomina Vigliotti.
“We want to establish a framework so that every entrepreneur, regardless of their starting resources, can access finance on favourable terms to be able to invest in their future. Our aim is to promote a fairer, more even and more accessible ecosystem for all.”
Banca Etica chair Anna Fasano said: “Thanks to these agreements Banca Etica strengthens the synergy with the EIF and the EIB, which for many years have recognised our specific know-how in terms of providing finance to the social economy.
“Banca Etica will therefore be able to provide additional resources on favourable terms to productive businesses that can have a positive impact on the community.”
The financing provided to businesses under the agreement between Banca Etica and the EIF can take the form of unsecured loans, short-term credit lines, advance payments on contracts and invoices, or guarantees. Additionally, individuals can also apply for loans to support training initiatives.