Activate over 630 million euros of loans in favor of pmi e Italian mid-caps to counter the economic difficulties caused by the pandemic, through the alternative tool of Basketball Bond with the support of the European Guarantee Fund (EGF). This is the objective of the new financing program of the European Investment Bank and Cassa Depositi e Prestiti.
In detail, the financing program consists of two phases: in the first phase, the SMEs will issue bonds for an amount between 2 and 25 million euros (the so-called mini-bonds) in favor of vehicle companies set up by the arranger banks, which will underwrite them by making the financial resources available; subsequently, Cdp, together with other investors, will purchase from the same companies securities guaranteed by the same mini-bonds (ABS - Asset Backed Securities) for an equivalent amount.
The EIB's intervention will make it possible to absorb up to 90% of the losses that may accrue on each issue, and up to a share equal to 35% of the mini-bond portfolios, for a maximum value of 200 million euros per the whole program. Thanks to'leverage effect it is estimated that new loans to Italian companies could be activated for over 630 million euros.
In this way, the guarantees granted by the EIB will allow CDP to invest in Basket Bond operations at reduced interest and with longer durations: the goal is to allow over 100 companies (up to 3 employees) to finance their growth projects through an alternative channel to the banking one, safeguarding employment levels.
This agreement adds to those recently signed between CDP and the EIB Group, again with an EGF guarantee: the first with the EIB in July and the second with the subsidiary European Investment Fund (EIF) in August, for a total of secured financing of more than 6 billion euros.
"This operation is aimed at supporting the economic recovery of the Italian entrepreneurial fabric and the liquidity needs of our medium and small-sized companies, the driving force of the economy", he added Jasmine Vigliotti, Vice President of the EIB.
While Dario Scannapieco, Chief Executive Officer of Cdp underlined that this operation is in line with the objectives of the Group's 2022-2024 Strategic Plan and that the collaboration aims to "support sustainable investments by companies and the growth of the Italian economy".
