The one subscribed by Intesa Sanpaolo and Fondo Italiano d'Investimento SGR (the largest institutional private equity operator to support the real Italian economy) is a completely innovative instrument: it is in fact the first bilateral ESG-linked direct financing operation of funds of funds in Italy. It sounds like a play on words, but in fact it is this: the bank led by Carlo Messina has made available two revolving lines of credit with ESG (Environmental, Social and Governance sustainability) characteristics, for a total of 55 million euros, in support of the activities of two funds of funds (FOF) managed by Fondo Italiano d'Investimento SGR. In detail we are talking about 30 million euros for the FOF Private Equity Italy and 25 million euros for the FOF Private Debt Italy.
The financing, structured by the IMI Corporate & Investment Banking Division of Intesa Sanpaolo directed by Mauro Micillo, it will allow to concentrate on a quarterly basis the activities of recalling the funds from the shareholders, optimizing the use of capital for the fund investors. Intesa Sanpaolo's ESG loan also envisages economic conditions indexed to the achievement of specific indicators linked to sustainable development objectives in line with the ESG criteria of which the Fondo Italiano d'Investimento, adhering to the United Nations Principles for Responsible Investment (UN PRI ), has already equipped itself.
The indicators identified by Intesa Sanpaolo concern the asset manager itself (direct key performance indicators such as the maintenance of high corporate governance standards, personnel protection, the containment and efficient management of consumption, maximum transparency towards investors) and the targets investment (indirect kpi, such as the subscription by the funds in the portfolio of ESG policies aligned with international best practices). Fondo Italiano d'Investimento has as its main objective the management of closed-end investment funds dedicated to channeling patient capital towards the system of small and excellent Italian companies in strategic sectors for the country, combining the return on invested capital with the development of the Italian production system.
“Intesa Sanpaolo – says Andrea Mayr, Head of the Financial Institutions Department of the IMI Corporate & Investment Banking Division of Intesa Sanpaolo – makes attention to the environment, social issues and good governance one of its strengths, so much so that it is included in the main international sustainability indices. It is thanks to this background and the experience we have gained in the field of sustainable financing that Fondo Italiano d'Investimento has chosen us to finalize the first direct ESG loan of two funds of funds in Italy. The two FOFs managed by Fondo Italiano d'Investimento will be able to obtain economic conditions that are even more advantageous than the starting ones by achieving pre-established ESG objectives, thus combining good investments and sustainability”.
“Attention to ESG issues – adds Antonio Pace, Chief Executive Officer of Fondo Italiano d'Investimento – is a crucial element in all of Fondo Italiano d'Investimento's actions, which work to promote new sustainable and inclusive growth for companies and Italy as a whole. We are happy to have created, together with Intesa Sanpaolo, the first ESG-linked financing instrument dedicated to our funds of funds, in the belief that the commitment to orientate the underlying investments towards sustainability criteria can be rewarding for the future of our system productive and for its competitiveness.”
