Cassa Depositi e Prestiti kicks into gear and is preparing to become the armed wing of investments in Italy with a 200 billion euro industrial plan over three years based on two cornerstones: businesses and infrastructure.
The company led by Fabrizio Palermo intends to act as a driving force for the growth of the country, assuming the driving role that the government has been wanting to give it for months. It is no coincidence that the Minister of the Economy, Giovanni Tria, stated: “The slowdown of the Italian economy is accentuating. CDP is called, in its independence, to play a growing role in the revitalization of our economy".
CDP: GENERAL LINES OF THE PLAN
The first floor of the Palermo-Tononi era foresees an investment of 111 billion euros of resources own, 23 percent more than envisaged in the previous plan, to which will be added a further 92 billion (+47%) of funds from private investors and other territorial, national and supranational institutions. Total: 203 billion euros.
Most of the resources, 83 billion euros, will be destined to support businesses, while 25 billion will be available for infrastructure, public administration and the local area. 3 billion will instead be used for cooperation in order to allow CDP to become a co-financier in developing countries. Lastly, the plan envisages a strengthening of the sectoral and industrial skills of the large strategic holdings in order to manage the equity investment portfolio also in a long-term industrial logic.
“All the planned interventions – underlines the group – will be carried out ensuring the economic-patrimonial balance and, therefore, the full protection of the savings that families entrust to CDP through postal savings bonds and passbook savings accounts”.
“The business plan approved today – declared the managing director of Cassa depositi e prestiti Fabrizio Palermo – sanctions the start of a new phase of Cassa depositi e prestiti which, with an unprecedented commitment, will take on an increasingly proactive role in supporting economic growth and sustainable development over the next three years. We are introducing a new operating model which aims at further strengthening the Group's skills, at organizational and operational simplification. A far-reaching transformation, which will allow us to activate huge resources in favor of businesses and territories, increasing the number and effectiveness of our interventions to encourage the country's growth."
CDP COMPANIES
The first line of action envisaged by Cassa Depositi's 2019-2021 business plan focuses on businesses and plans to mobilize 83 billion euros in three years, resources that will be used to create an integrated offer by focusing on innovation, growth and exports.
Compared to today, the company also intends to expand the number of supported companies, reaching 60 companies, with a "growing focus on SMEs”.
As regards the instruments, in order to encourage innovation, CDP plans to expand its medium-long term financing activities (in complementarity with the banking system) and to intervene in a more incisive way "in venture capital also through a dedicated SGR and funds for incubators/accelerators”, reads the company note.
In order to encourage domestic and international growth, loans and direct guarantees for investments will be expanded, it will be the activity of the SACE group was strengthened to support exports and a reorganization of equity instruments and the launch of supply chain funds will be carried out in sectors such as mechanics, agri-food and the white economy.
As far as SMEs are concerned, CDP provides for the "facilitating access to direct credit, also through the involvement of other investors with instruments such as regional basket bonds, and indirect, in collaboration with the banking system and through national and European guarantees or funds" , continues the note. Finally, a multi-channel distribution model will be introduced in which companies will be able to have a single point of contact to access all the group's products.
CDP INFRASTRUCTURE
25 billion euros instead they will be used for infrastructure and public utility services. To this end, the plan envisages the establishment of a dedicated unit – “CDP Infrastructures”, in fact - which will support the local authorities in the planning, development and financing of the works.
In addition to the role of lender, CDP will also perform that of "promoter of new strategic works, involving industrial subjects in public-private partnership operations". For the Pa, the hypothesis of the eve confirmed. In fact, according to the company's note, investments and innovation will also be supported "through renegotiations and advances to facilitate access to national and European funds and the payment of debts to companies". Established the increase of direct interventions on the territory with the launch of City Plans for the redevelopment of urban areas, and initiatives to support tourism and art and culture.
CDP COOPERATION AND LARGE STRATEGIC SHAREHOLDINGS
3 billion euros they will be used to carry out projects in developing countries and in emerging markets where CDP will assume the role of lender "with the ability to direct resources through the identification of investment projects".
As far as large strategic holdings are concerned, however, the focus is on "strengthening sectoral and industrial skills in order to manage the portfolio of holdings also in a long-term industrial logic".
"This Industrial Plan - said the president of Cassa depositi e prestiti, Massimo Tononi – represents a very innovative step and aligns the strategies of Cassa depositi e prestiti with the major global trends and the Sustainable Development Goals defined by the UN 2030 Agenda. At the same time it confirms the deep bond of Cassa depositi e prestiti with its historical values: support for the country's economy and its development, on the one hand, and the management and protection of the savings entrusted to us on the other by millions of Italians”.
The Cdp leaders used great prudence when answering questions on the Alitalia and Telecom dossiers. On the former flag carrier, the CEO of Palermo specified the impossibility, dictated by statute constraints, of investing in loss-making companies, while on Tim, President Tononi confirmed his support, reiterating however that "the purpose of CDP has not changed ”.
