Half a billion of new resources available to medium-small Italian companies and farms. This is the effect of an agreement signed between the European Investment Bank (EIB) and Banco BPM for the support of the Italian economyto. Out of the total, 200 million are reserved for SMEs (up to 250 employees), 200 for medium-sized enterprises (between 250 and 3.000 employees) and 100 for agricultural enterprises with a 10% quota for “young farmers” (under 41 years of age). The loans are intended to finance both new and ongoing investments, provided they have not yet been completed.
The interventions, relating to companies active in all productive sectors (agriculture, craftsmanship, industry, commerce, tourism and services) may concern the purchase, construction, expansion and renovation of buildings; the purchase of plant, equipment, vehicles or machinery; expenses, ancillary charges and intangible assets related to projects, including research, development and innovation expenses; the permanent need for working capital linked to the operational activity. As for the structure of the operation, the EIB signs a new covered bond in private placement issued as part of the BPM Covered Bond 2 programme, secured by a portfolio of residential mortgages established pursuant to the Italian law on Guaranteed Bank Bonds.
The covered bond issued by Banco BPM has a duration of six years with repayment of the principal upon maturity and with fixed rate coupon of 0,5% per annum; Banco BPM, in turn, transfers 500 million of new resources with a financial advantage (rate reductions for companies) to finance the projects of companies that request it. Banco BPM, through its network of branches, will manage loan applications, disbursements and repayments. The loan terms can be up to 12 years.
“I am particularly satisfied – he said Dario Scannapieco, Vice-President of the EIB – the collaboration with Banco BPM: it is demonstrating a high speed in the allocation of resources, and this is the sign that also thanks to the partnership with a large Italian bank, Europe can be close to citizens and businesses, including agricultural ones, to the revival of the economy”.
“With this operation – he commented instead Giuseppe Castagna, Chief Executive Officer of Banco Bpm – the already consolidated relationship with the EIB is strengthened, which constitutes a significant chapter of the constant activity carried out by Banco Bpm in favor of Italian companies. To date, the loans disbursed under the agreements with the EIB have enabled us to support more than 2.200 small and medium-sized enterprises for an amount of loans exceeding one billion euros. Specifically with this operation, I am very satisfied that a substantial portion of the ceiling is destined for agricultural companies, a sector in which Banco Bpm represents a point of reference for many entrepreneurs and in which we intend to continue to grow".
