CDP presents the report on the impact generated by the inaugural social bond issuance. The impact on employment is significant, estimated at around 17,500 full-time jobs, split between newly-created posts and those that have been kept open
Rome November 27,2018
In November 2017, CDP successfully issued its first €500 million Social Bond, under the medium-long term Debt Issuance Programme. The purpose of this bonds, the first of this kind in Italy, is to raise capital in order to facilitate access to credit by small-medium sized Italian companies based in disadvantaged areas, with a particular focus on southern Italy and the regions affected by earthquakes.
One year after they were issued, CDP presents the results of the impact of the Social bond on the territory: the funds raised were entirely allocated to generating funding for more than 2,800 SMEs across Italy, with a tangible impact on employment, creating approximately 17,500 full-time jobs, 6,200 of which were maintained and 11,300 of which were created outright. Many Italian companies have been able to benefit from the resources provided by CDP, using these funds to invest in machinery and new technologies that have bolstered growth, both in terms of size and turnover. The "Luchino" chocolate shop in Modica is an example of this success.
The business has increased its production as a result of the funds provided by CDP. More than 56% of the social bonds funds have been used in areas harmed by earthquakes, providing effective support to companies in rebuilding and relaunching their business activities. This has been the case with "Ferropol Coating", a Modena-based metalworking factory.
Due to the CDP funds, the company has been able to get back up and running after the damage caused by the earthquake, and has even recorded a significant increase in turnover. This is one of the many ways that we continue to support growth across Italy