The European Investment Bank (EIB) and Intesa Sanpaolo — the largest banking group in Italy — have finalised two new agreements totalling €700 million to back access to finance and investment by small and medium-sized enterprises (SMEs) and mid-caps in Italy.
The two operations, announced by EIB Vice-President Gelsomina Vigliotti and Intesa Sanpaolo’s Head of Domestic Commercial Banking Stefano Barrese, will help support around 1,000 Italian businesses, mobilising over €1.9 billion in investment in the real economy.
The first operation involves the EIB’s purchase of a €500 million covered bond issued by Intesa Sanpaolo. The funds collected will help support access to finance by SMEs and mid-caps.
About 25% of the resources will finance green projects promoting climate action, such as energy efficiency work, investment in renewable energy and sustainable mobility initiatives.
Some of the financing may also go to projects in southern Italy, potentially benefiting from the additional advantages of the special economic zone (ZES Unica). This operation is set to help mobilise an estimated €1.4 billion in new investment.
The second operation consists of a €200 million risk-sharing guarantee issued by the EIB to Intesa Sanpaolo to support investment in Italian mid-caps, with 25% of the overall amount going to climate action.
The EIB will share the credit risk of the new underlying operations, using this instrument to enable Intesa Sanpaolo to expand its capacity to finance companies and promote new productive investment, with an estimated leverage effect of €500 million in the real economy.
The EIB guarantee falls under the REPowerEU programme to promote energy security in the European Union by investing in renewable energy, energy efficiency and power grids.
“These agreements confirm our steadfast commitment to supporting entrepreneurship in Italy, with a particular focus on companies’ green transitions and economic development in southern Italy,” said Vigliotti. “With reliable partners like Intesa Sanpaolo, we can mobilise substantial resources and have a concrete impact on the real economy, supporting investment and promoting sustainable growth on the ground.”
Barrese said: “Intesa Sanpaolo acts like a bridge between the real economy and finance, with our goal being to make SMEs and mid-caps even more competitive by supporting the best growth strategies with a sustainable medium/long-term approach.
“Working with partners like the EIB, we promote the development of Italian small and medium-sized companies and back Italian industry.”