Intesa Sanpaolo & EIB Boost Italian Economy with €700M

Intesa Sanpaolo and the European Investment Bank (EIB) are set to bolster the Italian economy through two new agreements totaling €700 million. This funding aims to enhance credit access for small and medium-sized enterprises (SMEs) and mid-cap companies, stimulating nearly €2 billion in investments across Italy.

Covered Bond Subscription

The first initiative involves the EIB subscribing to a €500 million covered bond issued by Intesa Sanpaolo. These funds will target the credit needs of SMEs and mid-cap companies, with 25% allocated to green projects, including energy efficiency improvements, renewable energy investments, and sustainable mobility initiatives. Projects in the Mezzogiorno regions will also benefit, leveraging incentives from the Zes Unica. This operation is projected to generate approximately €1.4 billion in new investments.

Focus on Green Initiatives

A significant portion of the covered bond is earmarked for environmentally friendly projects. This aligns with the broader European push towards a greener economy.

Risk Sharing Guarantee

The second initiative is a €200 million risk-sharing guarantee from the EIB to Intesa Sanpaolo, designed to support investments by Italian mid-cap companies. Similar to the covered bond, 25% of this allocation will focus on climate-related projects. The EIB will share the credit risk of new operations, enabling Intesa Sanpaolo to expand its financing capacity and stimulate new productive investments, with an estimated leverage effect of over €500 million on the real economy. This guarantee is part of the REPowerEU program, which seeks to promote EU energy security through investments in renewable sources, energy efficiency, and electricity networks.

Before moving forward, let's have a look at Intesa Sanpaolo's key financial data:

The guarantee falls under the REPowerEU program, aimed at bolstering EU energy security through renewable investments.

Statements from Leadership

"With these agreements, we confirm our strong commitment to supporting the Italian entrepreneurial fabric, with particular attention to the green transition of companies and the economic development of the Mezzogiorno," said Gelsomina Vigliotti, Vice President of Intesa Sanpaolo. "Being able to count on solid partnerships such as the one with Intesa Sanpaolo allows us to mobilize significant resources and generate a concrete impact on the real economy, supporting investments and promoting sustainable growth in the territories."

"Intesa Sanpaolo acts as a bridge between the real economy and finance. Our goal is to make SMEs and mid-caps increasingly competitive, supporting their best growth strategies according to a sustainable and medium-long term approach," commented Stefano Barrese, head of the Banca dei Territori Division of Intesa Sanpaolo. "We look at the development of Italian small and medium-sized businesses together with institutional partners like the EIB, with whom we share the commitment to supporting the country's productive fabric."

Here’s a summary of the financial commitments involved:

Let's explore the projected impact of these investments on key sectors in Italy.

Expected Investment Impact

The initiatives are expected to mobilize nearly €2 billion in investments across Italy, fostering growth and sustainability.

Geographic Distribution

A portion of the funds will support projects in the Mezzogiorno regions, aiming to reduce regional economic disparities.

Focus on Sustainability

Both agreements prioritize green projects, dedicating 25% of the funds to initiatives like energy efficiency and renewable energy.

REPowerEU Alignment

The risk-sharing guarantee aligns with the REPowerEU program, promoting energy security through renewable investments.

Statements from Key Figures

"...With these agreements, we confirm our strong commitment to supporting the Italian entrepreneurial fabric, with particular attention to the green transition of companies and the economic development of the Mezzogiorno," kata Gelsomina Vigliotti, Vice President of Intesa Sanpaolo.

"...Intesa Sanpaolo acts as a bridge between the real economy and finance. Our goal is to make SMEs and mid-caps increasingly competitive, supporting their best growth strategies according to a sustainable and medium-long term approach," kata Stefano Barrese, head of the Banca dei Territori Division of Intesa Sanpaolo.

Breakdown of Green Project Investments

Below is a detailed look at how funds will be allocated to various green initiatives.

Note: The exact percentages (X, Y, and Z) were not provided in the original article.

Impact on SMEs

SMEs are expected to benefit significantly from enhanced access to credit, fostering innovation and growth.

Mid-Cap Support

Mid-cap companies will receive targeted support to expand their operations and contribute to economic development.

Overall Economic Impact

The combined initiatives are poised to create a substantial positive impact on the Italian economy, fostering sustainability and growth.

Here’s a table outlining the projected economic impact:

The Role of ZES Unica

The ZES Unica incentives will further enhance the attractiveness of projects in the Mezzogiorno regions.