Guarantee agreement signed under the framework of the European Guarantee Fund (EGF) CDP to grant new loans of up to 800 million euro with EIB guarantee
Rome, 13 July 2021 – Cassa Depositi e Prestiti (CDP) and the European Investment Bank (EIB) today signed a guarantee agreement, under the framework of the European Guarantee Fund (EGF), to support access to credit for Italian businesses that, despite having solid long-term prospects, are experiencing difficulty as a result of the current macroeconomic situation.
Specifically, the EIB will provide a guarantee to CDP for the granting of new loans of up to a maximum of 800 million euro to support the development initiatives of mid-caps and large corporates. The guarantee, amounting to 600 million euro, will cover 75% of the nominal value of each individual loan granted by CDP, which can be for up to a maximum of 100 million euro with a duration of up to six years. At the same time, CDP has committed to providing additional loans to SMEs and mid-caps for an amount equivalent to the value of the EIB guarantee, bringing the transaction up to a total of over 1 billion euro of new lending to support the growth plans of enterprises.
The funds are intended to support the working capital and investment needs of Italian businesses to speed up the recovery process.
This transaction is of strategic importance as it forms part of a European programme and broader cooperation with the EIB Group, which specifically relies on National Promotional Institutions, such as Cassa Depositi e Prestiti, to help revive the country’s economy and strengthen the leadership and competitiveness of Italian businesses in domestic and international markets.
Dario Scannapieco, Chief Executive Officer of CDP, stated: “With this agreement, Cassa Depositi e Prestiti is continuing to provide support to Italian businesses for their growth plans in the current macroeconomic environment and to contribute to revitalising Italy’s business sector. Through this transaction, CDP is consolidating its long-standing and fruitful cooperation with the EIB and continuing to promote investment in Italy to contribute to the revival of the economy”.
Jean-Christophe Laloux, EIB Director General, stated: “We are happy that we can count on our longstanding collaboration with CDP to help support Italian Companies and promote access to finance. Thanks to the backing of the EGF, the pan-European guarantee fund which is a part of the EU-measures to bring Europe out of the crisis caused by the pandemic, the EIB can once again offer the right guarantees to support Italian businesses. Now that, also thanks to the vaccines, we start to see the end of the pandemic, this financing can bring a bit of optimism to stimulate economic growth”.