CDP-ABI agreement for long-term investments by SMEs and mid-caps strengthened

CDP-ABI agreement for long-term investments by SMEs and mid-caps strengthened

Thanks to this agreement and Cassa's instruments, the duration of funding granted by CDP to banks for new loans to all smaller Italian enterprises has been increased to 15 years 

To date, Cassa’s Funds have provided more than €23 billion in financing to banks to support the projects and growth of the country’s SMEs and mid-caps


Facilitating access to credit for all smaller Italian companies and supporting the completion of the most complex and long-term development projects: these are the goals of the agreement signed by Cassa Depositi e Prestiti (CDP) and the Italian Banking Association (ABI) to increase the duration of funding that CDP grants to the banking sector to support investments by SMEs and mid-caps through its various "Funds".

By working through financial institutions and intermediaries, Cassa makes funding, products and solutions available to bolster the credit of all those enterprises, particularly small and medium-sized firms, that cannot directly benefit from CDP's operations. To this end, 2009 saw the launch of its Funds. Cassa uses these instruments to grant financial resources to banks which they can then use to provide loans on competitive terms to Italian companies

In line with its role as a long-term lender and thanks to the agreement reached with the ABI, the duration of CDP's funding of up to 15 years, which is currently only available for banks to finance enterprises in the areas affected by the 2009 and 2012 earthquakes, can be extended to all Italian enterprises, with loans having a minimum duration of 12 years. In some cases, the duration of CDP funding made available to banks may be extended up to 18 years, with loans to enterprises having to last for at least 15 years. The longer the duration of the financing requested from CDP by the bank, the longer the minimum duration of the loan that the bank grants to the company must be.

Currently, the collaboration between CDP, in its role as the National Promotional Institute, the ABI and the banking sector, is an effective counter-cyclical tool to support long-term investments by Italian companies. This has a tangible positive impact on the economy, including on employment and on strategic sectors with longer operating cycles (e.g: the tourism sector, agriculture, and energy efficiency or renewable energy production initiatives).

Since 2009, Cassa has granted a total of more than €23 billion in funding to banks to support SMEs’ and mid-caps’ projects and boost competitiveness. In addition, its Funds system has also been used for private reconstruction projects to support households and businesses in areas affected by natural disasters.