EIB and BCC Iccrea Unlock €125 Million to Support Growth of Italian SMEs

The operation was completed through the EIB’s full subscription of a €125 million covered bond issued by BCC Banca Iccrea.

Small and medium-sized businesses across Italy are set to gain access to fresh funding after the European Investment Bank (EIB) and BCC Banca Iccrea signed a new agreement designed to support company investment, expansion and long-term competitiveness. The initiative will channel €125 million to businesses served by the cooperative banks that form part of the BCC Iccrea Group.

The financing package places particular emphasis on sectors that play an important role in local economies and sustainable development. A minimum of 25% of the total funding, equivalent to €31.25 million, has been reserved for projects linked to agriculture and the bioeconomy, providing additional support for companies operating in these strategic areas.

The agreement gives businesses access to financing on more favourable terms, helping them move forward with investment plans, modernisation projects and growth initiatives at a time when access to affordable capital remains a key consideration for many enterprises.

Structured Through a Covered Bond Issue

The operation was completed through the EIB's full subscription of a €125 million covered bond issued by BCC Banca Iccrea. The bond is listed on the Luxembourg Stock Exchange and carries an Aa2 rating from Moody's.

The security has a seven-year maturity and offers a fixed-rate yield of 4.052%, with a final spread of mid-swap plus 43 basis points. The transaction provides BCC Iccrea with additional resources that can be directed toward financing businesses throughout its cooperative banking network.

Focus on SMEs and Mid-Cap Companies

Most of the financing will be directed toward small and medium-sized enterprises employing fewer than 250 people. These businesses will receive at least 70% of the funds made available through the agreement. The remaining share may be allocated to mid-cap companies employing between 250 and 3,000 people. By covering companies of different sizes, the initiative seeks to strengthen investment activity across a broad range of sectors and regions. Access to the new financing is expected to help businesses launch new projects, expand operations and improve productivity with support from EIB-backed lending conditions.

Agriculture and Bioeconomy Take Center Stage

A key feature of the agreement is the dedicated allocation for agriculture and bioeconomy projects. These sectors are viewed as increasingly important for sustainable economic growth, rural development and the transition toward more resource-efficient production models.

The funding is intended to help companies invest in new technologies, business expansion, production improvements and other initiatives that contribute to stronger competitiveness and long-term development.

Leaders Highlight Importance of Business Investment

EIB Vice-President Gelsomina Vigliotti said the partnership supports business investment with particular attention to agriculture and the bioeconomy, describing both sectors as important for sustainable development and economic and social cohesion. She also highlighted the role of banks in facilitating access to credit for small businesses and in mobilising resources for the wider economy through instruments such as covered bonds.

BCC Iccrea Group General Manager Mauro Pastore said the agreement strengthens cooperation between the two institutions and provides an additional tool to support SMEs and mid-cap companies pursuing growth opportunities. He noted that expanding access to credit remains essential for helping businesses carry out investment and development plans, particularly in sectors that contribute significantly to local economic competitiveness.

The new financing package further deepens cooperation between the EIB and the BCC Iccrea Group, delivering additional resources to Italian businesses and reinforcing support for investment, innovation and sustainable economic development.