Italy: EIB Group and Banco BPM support Italian economic recovery to the tune of EUR1 billion.
ENPNewswire-January 21, 2022--Italy: EIB Group and Banco BPM support Italian economic recovery to the tune of EUR1 billion
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Release date- 20012022 - Italy: EIB Group and Banco BPM support Italian economic recovery to the tune of EUR1 billion
The EIB Group (EIB and EIF) has signed a EUR91 million guarantee in support of Banco BPM, enabling the Italian bank to channel EUR1 billion into the real economy.
The operation facilitates access to credit for Italian small and medium-sized enterprises (SMEs) by providing finance in the medium and long term.
The guarantee covers any first loss of a synthetic securitisation structure via the European Guarantee Fund.
The EIB Group (comprising the European Investment Bank and the European Investment Fund) and Banco BPM join forces once again to support the working capital requirements and investments of Italian SMEs hit by the economic crisis caused by the pandemic. This is the first operation of this type in Italy and one of the first in Europe.
To this end, the European Investment Bank (EIB) and the European Investment Fund (EIF) will provide a guarantee of EUR91 million on a junior tranche of a synthetic securitisation operation of a portfolio of SME loans originated by Banco BPM. The Italian bank will thus be able to provide finance and liquidity to SMEs via subsidised loans totalling around EUR1 billion.
The operation covers the first loss of a synthetic securitisation structure via the European Guarantee Fund (EGF), an integral part of the EUR540 billion package of measures approved by the European Union in 2020 specifically dedicated to countering the economic difficulties and productive slowdowns caused by the pandemic.
This is the third synthetic securitisation operation between the EIB Group and Banco BPM backing Italian SMEs and mid-caps, the first of which was signed in June 2019 (EUR55 million) and the second in December 2020 (EUR76.6 million) to support SMEs affected by COVID-19.
EIB Vice President Gelsomina Vigliotti said: 'The EIB confirms its commitment to supporting Italian companies hit by the pandemic. The operation with Banco BPM facilitates access to credit and frees up medium and long-term financing resources for SMEs.'
EIF Chief Executive Alain Godard said: 'The European Guarantee Fund was created to support SMEs in Europe in the wake of the pandemic, and this transaction is proof of that. This is the first securitisation...
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