The European Investment Bank has agreed up to €500 million in financing with Italy’s state-backed lender Cassa Depositi e Prestiti to support small and medium-sized businesses and mid-sized companies investing in areas such as research, innovation and the energy transition.
The deal will allow CDP to provide funding on favourable terms to small and medium-sized enterprises (SMEs) — companies with fewer than 250 employees — and to “mid-caps”, defined in the agreement as firms with up to 3,000 employees, the European Investment Bank (EIB) said in a statement on Tuesday.
A first tranche of €150 million has already been signed, with further tranches planned up to the €500 million total.
The EIB said the financing is intended to back investments and projects in research and development, innovation, the energy transition and sustainability carried out by eligible companies in Italy and other European countries.
CDP will be able to use the EIB funds for medium and long-term financing, as well as for buying or subscribing to bonds and other debt securities issued by companies.
The agreement also includes the option to support securitisation structures backed by “mini-bonds” issued by beneficiary companies, known as Basket Bonds.
Who is involved — and how it works
CDP will also be able to support smaller companies with turnover of between €25 million and €50 million through its direct financing activities, the EIB said.
It added that its triple-A credit rating allows it to raise money on international markets on more favourable terms, which can then be passed on through intermediaries such as CDP.
CDP is Italy’s National Promotional Institution and has supported the Italian economy since 1850, while the EIB is the European Union’s lending arm owned by its 27 member states.
