Development + (FRCS)

The new Italian development cooperation instrument dedicated to companies investing in emerging markets.

Features

The financing amount for each transaction must range from €250,000 to €10 million

Financing term ranging from 3 to 15 years from the date of disbursement with a grace period on principal repayment of no less than 1 year and no more than 5 years

The financing may be partially or fully backed by a bank guarantee, depending on the creditworthiness of the applicant company

Financing not exceeding 70% of the equity contribution provided by the applicant company

Financing also available for equity subscription transactions completed within the 12 months preceding the date of execution of the agreement

50% of resources are reserved for investments by SMEs and/or companies whose activities are primarily located in priority countries for Italian Development Cooperation

With the Ministry of Foreign Affairs and International Cooperation (MAECI) and the Italian Agency for Development Cooperation (AICS), we support your equity investments in companies based in OECD-DAC partner countries to foster sustainable growth.

The interest rate is fixed for the entire duration of the financing and is determined by the relevant decree of the Ministry of Enterprises and Made in Italy, in force on the date of signature of the agreement.

Target beneficiaries

Companies

Limited liability companies or partnerships established in the European Union or in OECD-DAC partner countries, with a registered office, including a secondary office, in Italy, and with proven experience in the relevant sector of intervention.

How it works

We provide your company with medium to long-term financing to support equity investments in companies based in OECD-DAC partner countries, through resources from the Revolving Fund for Development Cooperation, with a facility of up to €70 million.
The investment must promote sustainable and inclusive development in the area of operation, fostering job creation in compliance with international labour conventions.

How to Apply

Useful Information

The financing application may be submitted in accordance with the procedures set out in the Operational Guidelines. The documents available at the link below, referred to in the Operational Guidelines, include the financing application forms and related declarations to be completed by the applicant company, as well as templates for the contractual documentation and other supporting documents required for the application and granting of financing (Documentation attached to the Operational Guidelines).

Context

Law No. 125/2014 designates CDP as the manager of the Revolving Fund for Development Cooperation (FRCS), established within the Ministry of Economy and Finance (MEF), to provide financing to private-sector entities as part of initiatives targeting European companies or companies incorporated in OECD-DAC partner countries. These initiatives aim to promote private-sector involvement in sustainable development activities under International Cooperation by supporting equity investments in target companies (Article 27, paragraph 3, letter a).
AICS supports the activities of the FRCS by providing technical and operational assistance for the management of the financed initiatives.