EIB Grants €100 Million Loan to Intesa Sanpaolo to Boost Green Transition in Italy’s Public Sector

EIB Grants €100 Million Loan to Intesa Sanpaolo to Boost Green Transition in Italy’s Public Sector

(IN BRIEF) The European Investment Bank (EIB) has signed an agreement with Intesa Sanpaolo to provide a €100 million loan aimed at supporting the green transition of the public sector and publicly owned companies in Italy. This partnership marks the first EU bank loan to a commercial bank in Italy specifically for sustainable public sector investments. The funding, facilitated by Intesa Sanpaolo’s IMI Corporate & Investment Banking division, will promote investments totaling €200 million by local and public authorities. Eligible projects will include the acquisition of environmentally friendly buses for public transportation, the renovation of water supply networks, and investments in waste collection infrastructure. The EIB-Intesa Sanpaolo collaboration will offer favorable financing conditions, including extended maturities, flexible disbursement plans, and competitive interest rates, providing crucial support for Italy’s transition to a sustainable economy. Over the past five years, the EIB and Intesa Sanpaolo have partnered on multiple operations, supporting access to credit for small and medium-sized enterprises and contributing to significant infrastructure projects.

(PRESS RELEASE) LUXEMBOURG, 6-Nov-2023 — /EuropaWire/ — The European Investment Bank (EIB) has granted a €100 million loan to Intesa Sanpaolo to support the green transition of the public sector and publicly owned companies. The agreement was signed in Milan by EIB Vice-President Gelsomina Vigliotti and Head of Distribution Platforms & GTB in Intesa Sanpaolo’s IMI CIB Division Nicola Doninelli.

This is the first EU bank loan granted to a commercial bank in Italy to back sustainable public sector investments, and will enable Intesa Sanpaolo’s IMI Corporate & Investment Banking division (led by Mauro Micillo) to promote investments totalling €200 million made by local and public authorities. Eligible investments will include the purchase of environmentally friendly buses for public transport use, the renovation or improvement of water supply networks and infrastructure and the purchase of vehicles, equipment and infrastructure for sorted waste collection. The EIB and Intesa Sanpaolo resources may also be allocated to investments and projects funded by the Italian national recovery and resilience plan.

The EIB-Intesa Sanpaolo agreement opens up new possibilities for public bodies, offering favourable financing conditions including longer maturities (up to 15 years), flexible disbursements and amortisation plans and competitive interest rates.

In the last five years, the EIB and Intesa Sanpaolo have signed 15 operations totalling almost €2.4 billion, supporting small and medium-sized enterprise (SME) and mid-cap access to credit to the tune of €4.5 billion, together with the completion of major infrastructure work such as the Palermo-Catania railway and the modernisation of the port of La Spezia.

EIB Vice-President Gelsomina Vigliotti said: “Investment promoting water sector efficiency, environmentally friendly transport and better waste management is key to achieving climate neutrality. The EIB-Intesa Sanpaolo partnership confirms our joint commitment to the transition to a sustainable society and economy.”

Head of Distribution Platforms & GTB in Intesa Sanpaolo’s IMI CIB Division Nicola Doninelli added: “The innovative agreement signed with EIB confirms the group’s commitment to accelerating the transition to a low-emission economy. These investments and resources are particularly necessary in the public sector, which has a significant impact on the daily lives of millions of people. Backing the sustainable modernisation of public services is a concrete way to invest in the development of our country.”

Background information

The European Investment Bank (EIB) finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2022, the EIB Group provided more than €45 billion in financing for projects in Italy.

Intesa Sanpaolo is Italy’s leading banking group — serving families, businesses and the real economy — with a significant international presence. Intesa Sanpaolo’s distinctive business model makes it a European leader in wealth management and protection and advisory, with a specific focus on digital and fintech, in particular with Isybank, the group’s digital bank. An efficient and resilient Bank, it benefits from its wholly-owned product factories in asset management and insurance. The Group’s strong ESG commitment includes providing €115 billion in impact lending by 2025 to communities and for the green transition, and €500 million in contributions to support people most in need, positioning Intesa Sanpaolo as a world leader in terms of social impact. Intesa Sanpaolo is committed to net zero by 2030 for its own emissions and by 2050 for its loan and investment portfolios, asset management and insurance business. An engaged patron of Italian culture, Intesa Sanpaolo has created its own network of museums, the Gallerie d’Italia, to host the bank’s artistic heritage and as a venue for prestigious cultural projects.

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SOURCE: European Investment Bank