EIB and BCC Iccrea sign €400M deal to support SMEs and mid-caps in Italy

The operation is structured around the EIB’s full private placement purchase of a new €200 million covered bond issued by BCC Banca Iccrea.

The European Investment Bank (EIB) and BCC Banca Iccrea, parent company of the BCC Iccrea Group, have signed an agreement that will help unlock more than €400 million of new finance for small and medium businesses (SMEs) and mid-caps. The operation, announced today in Rome by EIB Vice-President Gelsomina Vigliotti and Managing Director of BCC Iccrea Group Mauro Pastore, supports access to credit on favourable terms and aims to promote innovation and projects located in the South of Italy, reflecting the strong commitment of both institutions to promoting the digital transition and economic cohesion in the country.

The operation is structured around the EIB’s full private placement purchase of a new €200 million covered bond issued by BCC Banca Iccrea. To this end, BCC Iccrea Group is allocating an additional €200 million, meaning that a total of €400 million will go to the real economy. The covered bond has a maturity of seven years and a fixed rate yield of 3.433%, which in line with the latest issues of the parent company of BCC Iccrea Group. 

The recipients of the new funding will be SMEs (up to 250 employees) and mid-caps (250 to 3 000 employees), which will be able to carry out new projects with a financial advantage derived from the competitive rates and long maturities provided by EIB loans. At least €100 million (or 25% of the total amount of the agreement) will be allocated to support innovative projects, and another €100 million will be dedicated to promoting projects in cohesion regions. 

“Instruments such as covered bonds are a viable alternative to traditional financial products to channel investment towards key sectors of the economy. This operation with BCC Iccrea Group aims to promote innovation and cohesion simultaneously, as well as access to credit on favourable terms for businesses. We need to make full use of these resources to build a more prosperous and fairer future for all Italians,” said EIB Vice-President Gelsomina Vigliotti.

“This operation forms part of a regional support process that aligns with BCC Iccrea Group's recent issues in 2024 totalling €1 billion. Through these instruments we want to continue to send a strong signal of solidarity to our productive fabric and to support small businesses, ensuring not only a fair distribution of resources at national level, but at the same time promoting the digital transition of companies and fostering their competitiveness in the domestic and foreign market", said Managing Director of BCC Iccrea Group Mauro Pastore.