EIB and CDP Join Forces to Unlock €1 Billion for Italy’s Public Sector, Focusing on Sustainability and Regional Development

EIB and CDP Join Forces to Unlock €1 Billion for Italy’s Public Sector, Focusing on Sustainability and Regional Development

(IN BRIEF) The European Investment Bank (EIB) and Cassa Depositi e Prestiti (CDP) have launched a new €500 million guarantee agreement aimed at bolstering public sector investment across Italy, particularly in central and southern regions. This initiative, which builds on a previous partnership, will enable CDP to offer up to €1 billion in loans to support environmentally sustainable and socially beneficial projects. The funding will target economic growth, climate resilience, and social cohesion, focusing on areas impacted by the 2016 earthquake and other vulnerable regions.

(PRESS RELEASE) LUXEMBOURG, 5-Nov-2024 — /EuropaWire/ — The European Investment Bank (EIB) and Cassa Depositi e Prestiti (CDP) have expanded their collaboration with a new agreement designed to boost Italy’s public sector investment, especially benefiting central and southern regions. This strengthened partnership, signed by both institutions, seeks to address regional development needs through environmentally sustainable initiatives that foster economic growth, social cohesion, and climate resilience.

Under the terms of the agreement, the EIB will provide a substantial guarantee of €500 million on loans issued by CDP, allowing the latter to extend a total of €1 billion in financing to public sector bodies over the coming five years. This structure effectively doubles the available funds for regional projects and enables broader support for initiatives critical to Italy’s social and economic landscape.

These funds are earmarked for promoting sustainable development across various regions, with an emphasis on communities affected by the 2016 earthquake in central Italy. Projects eligible for this financing include those focused on climate change mitigation, enhancing infrastructure resilience, and fostering social cohesion among Italy’s diverse regions. By backing environmentally positive projects, the EIB and CDP aim to ensure that this financing has a lasting impact on local communities and the wider environment.

This initiative builds on a successful precedent set in 2022 when the two institutions first collaborated on a similar guarantee arrangement to accelerate economic recovery and the green transition. This latest agreement underscores the ongoing commitment of both the EIB and CDP to address Italy’s regional challenges through sustainable public investment and reinforces their shared mission to drive inclusive growth in areas that need it most.

Background information

European Investment Bank (EIB)

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances sound investments that can contribute to EU policy. EIB projects strengthen competitiveness, foster innovation, promote sustainable development and improve social and territorial cohesion while supporting a fair and rapid transition towards climate neutrality. In the past five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.

Cassa Depositi e Prestiti (CDP)

Cassa Depositi e Prestiti (CDP) is the national promotional institution that has supported the Italian economy since 1850. It is committed to accelerating the industrial and infrastructure development of the country in order to contribute to its economic and social growth. CDP’s core activity promotes sustainable regional development as well as the growth and innovation of Italian companies, including internationally. It partners with local authorities, providing funding and advisory services to build infrastructure and improve public utility services. It is also active in the field of international cooperation to implement projects in developing countries and emerging markets. Cassa Depositi e Prestiti is financed from entirely private resources via postal savings bonds and passbooks and through issues on the national and international financial markets.

Media Contact:

Lorenzo Squintani
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+352437982528

Press Office

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SOURCE: European Investment Bank