Alternative financing: CDP and Springrowth support SMEs

We have invested €50 million in the ‘Diversified Lending Fund’ to promote the development of alternative financing channels for Italian businesses

Rome October 17,2017

CDP has confirmed its commitment to supporting the growth of Italian SMEs by supporting a new tool to help provide access to credit. CDP has invested €50 million in the Diversified Credit Fund for SMEs (Fondo di Credito Diversificato per le Imprese), which is run by Springrowth SGR, a leading asset management company specialising in credit instruments.

CDP is the anchor investor of the Diversified Credit Fund, alongside the European Investment Fund (EIF). The fund aims to attract €500 million and is targeting at least 100 businesses, with a potential volume of loans of up to €1.5 billion. The initiative is the only one of its kind in Italian finance and aims to promote alternative financing, providing additional, complementary credit instruments to those offered by the banking system and traditional financial intermediaries.

CDP’s commitment, together with Springrowth, is a pilot for a wider cooperation project between CDP, FEI and other National Promotional Institutions, whose aim is to create a pan-European platform that facilitates the development of an alternative financing market. CDP’s Chief Business Officer, Antonella Baldino, said: “The alternative financing market gives SMEs better quality access to new medium- and long-term lending channels. With the first direct investment in the fund launched by Springrowth SGR, which follows the recent equity investment in ELITE and our role as anchor investor in FII SGR’s Private Debt Fund of Funds, CDP is aiming to promote the development of this market, expanding its instruments and reach, in synergy with European partners, as part of a wider strategy to support businesses’ access to credit.”

It is one more way that are are promoting the future of business – #wepromotethefuture.