Cassa Depositi e Prestiti renews its commitment to supporting the growth of Italian companies, promoting an important alternative finance tool aimed at facilitating access to credit for SMEs and Small-Mid Caps. The investment of 20 million euro in the bottom October EMS IV, promoted by October Factory S.A, adds to the almost 115 million euro made available by various institutional investors at European level, including the French Public Investment Bank (Bpifrance), the European Investment Fund (EIF) and the Spanish Official Credit Institution (ICO).
October EMS IV it's a European long-term investment fund which is financed by issuing Notes and which grants loans to SMEs and Small-Mid Caps with registered office and / or Promptness in Italyas well as in other EU countries where the October group operates through its own platform digital lending. Using the platform allows companies to obtain financing on the basis of a specific scheme co-financing, thanks to resources from the fondofueled by institutional investors and lenders private individuals who identify the platform as an innovative and interesting investment opportunity which at the same time allows them to support the real economy.
On the base of target fund raising (250 million euro), a portfolio with a number of operations overall greater than 500 and with a sizebetween 30 thousand e 5 million euro. The intervention approach of the fund, which undertakes to invest in Italy an amount equal to at least double the investment made by CDP, is consistent with the CDP Business Plan 2019-2021 which provides for specific lines of intervention to support SMEs and Small-Mid Caps, especially in this period of restart following the epidemiological emergency.
Paolo Calcagnini, Chief Business Officer, commented: “With the investment in the October SME IV Fund, CDP continues its plan to support Italian SMEs and Small-Mid Caps, especially after the serious health emergency that hit our country. The investment in diversified credit funds, which complements the Basket Bond transactions, has the objective of reaching companies which, due to their size or specific intervention, cannot be reached directly by CDP. We are also convinced that CDP's investment in a fund linked to a digital lending platform could encourage investment in this asset class by other institutional investors”.
Sergio Zocchi, Chief Executive Officer of October Italy, said: "Being supportive of businesses is part of our DNA, but never as in these complex months and in view of the next ones, have we felt the responsibility and pride of creating the conditions to amplify the reach of our platform. The choice of CDP, which confirms its ability to have a vision towards innovation, translates into the possibility for many more companies to resort to financing instruments complementary to traditional channels, capable of responding quickly to the demand for resources, today more crucial than ever to overcome the contingency and start growing again”.
