Half a billion in funding for Southern Italy's SMEs is on the way. The breath of fresh air is due to a agreement signed in Naples between Cassa Depositi e Prestiti (Cdp) and UBI Banca, which establishes the start of a collaboration aimed at promoting joint initiatives aimed at supporting Italian companies.
As the first operational declination of the Protocol, CDP granted UBI a 500 million euro loanby subscribing to a bond loan senior unsecured, which will be used entirely in new loans to SMEs operating in the eight regions of the South. These loans may have a maximum amount of 15 million euros and a maturity of no less than 36 months, so as to support the realization of medium-long term investments.
The initiative is part of the strategic lines of the CDP Business Plan 2019-2021 which provides, in full synergy and complementarity with the banking system, specific actions to support companies in the South, promoting an extension of loan maturities.
In addition to the granting of liquidity by CDP to UBI to support loans to businesses, the collaboration also concerns other operational areas. Among these: the activation of guarantee instruments, also with the involvement of Confidi or through the use of "special sections" of the Guarantee Fund for SMEs, set up by CDP, which can improve the possibilities and conditions for accessing the bank credit.
La partnerships also means develop alternative finance instruments such as the so-called "basket bonds", securitization transactions of mini-bonds specifically issued by SMEs and Mid-Cap companies, in relation to which CDP and UBI would act as main investors, thus attracting additional private capital; as well as direct co-financing operations in support of growth and innovation projects of medium-sized Italian companies.
“The agreement signed with UBI – he commented Nuncio tartaglia, CDP Business Manager – represents an important pillar of CDP's strategy to support and innovate access to credit for Italian companies, through collaboration with the main national financial institutions. The recently completed transaction, for an amount equal to 500 million euros and aimed at SMEs in the South will allow for the flow of significant medium-long term resources to those areas of the country that most need financial support to activate a virtuous development process and growth, in line with the objectives of our Business Plan.”
“With the subscription of the UBI bond loan by Cassa Depositi e Prestiti – he added Frederik Geertman, Chief Commercial Officer and Deputy General Manager of UBI Banca – our partnership is further strengthened. This operation allows for an increase in support for businesses in the South, in a correct market logic. Furthermore, today we are signing a more extensive collaboration agreement with CDP on the basis of which we will implement innovative and effective financial instruments to accompany the development of Italian companies and support their investment plans. We are really pleased to see this synergy between our two institutions, both committed to strengthening the growth of the national economic system".
