EIF Provides €50 Million Guarantees to illimity Bank for SME Financing in Italy

(IN BRIEF) The European Investment Fund (EIF) has provided two guarantees totaling €50 million to illimity Bank to improve financing access for small and medium-sized enterprises (SMEs) in Italy. The guarantees, backed by the InvestEU program, focus on supporting SMEs in the areas of sustainability, innovation, and digitalization. The InvestEU Innovation and Digitalization guarantee of €25 million will enhance support for innovation-driven enterprises, while the InvestEU Sustainability guarantee of €25 million will promote green and sustainable investments. This partnership aims to empower SMEs in expanding their operations, investing in innovation, and creating job opportunities, further driving economic growth in Italy.

(PRESS RELEASE) LUXEMBOURG, 15-Jun-2023 — /EuropaWire/ — The European Investment Fund (EIF), part of the European Investment Bank Group and established to support Europe’s micro, small and medium-sized enterprises (SMEs), has granted two guarantees totaling €50 million to illimity Bank, aimed at improving access to finance for small and medium-sized enterprises (SMEs) in Italy. The focus of these SMEs lies primarily in sustainability, innovation, and digitalization. These transactions are backed by the InvestEU program.

Under the InvestEU Innovation and Digitalization guarantee of €25 million, illimity Bank will be able to provide enhanced support to enterprises driven by innovation and digitalization. This guarantee will facilitate access to financing for research and innovation-intensive SMEs, small mid-caps, and promote the adoption of digital technologies and digital transformation among businesses. The second guarantee, InvestEU Sustainability, also worth €25 million, will empower illimity Bank to promote the green and sustainable transition of the economy. It will encourage environmentally friendly, green, and inclusive investments by the target recipients.

This transaction signifies a significant milestone in empowering small and medium businesses in securing essential financing, enabling them to expand operations, invest in innovation, and generate new employment opportunities. illimity Bank, with its longstanding commitment to supporting SMEs, continues its successful collaboration with EIF, which commenced in December 2021. The partnership aims to effectively leverage these funds and drive economic growth in Italy.

EIF Chair Gelsomina Vigliotti said: “We are pleased to partner with illimity Bank in providing substantial support to Italian small and medium businesses. Through this collaboration, we aim to address the financing challenges faced by smaller businesses and stimulate their growth. The EIF €50 million investment guarantees, backed by InvestEU, will significantly contribute to enhancing access to credit and fostering economic development in Italy.”

European Commissioner for Economy Paolo Gentiloni said: “These two guarantees are part of the InvestEU programme, which aims to encourage sustainable, digital, innovative and inclusive investments across Europe. InvestEU is playing an important role in helping small and medium-sized companies gain access to the finance they need to grow and create jobs. Thanks to this agreement, an increasing number of Italian small and medium businesses will be able to secure crucial financing to do so and drive the green and digital transitions.”

CEO and Founder of illimity Corrado Passera stated: “illimity was born out of a commitment to support and bolster the entrepreneurial landscape in Italy. Our dedication to small and medium businesses is underscored by this agreement, which facilitates not only the provision of fresh liquidity during a challenging period, but also supports the funding of research, sustainable and inclusive projects, and the digitalisation of businesses. By partnering with the EIF, we can further empower companies with high-growth potential to boost their own growth and contribute to a positive transformation at an economic, social and environmental level across the country.”

Background information

The European Investment Fund (EIF) is a financial institution that is part of the European Investment Bank Group (EIB Group). Its main mission is to support European micro, small and medium-sized enterprises (SMEs) by supporting their access to finance and venture capital. The EIF is also active in supporting climate and infrastructure fund investments with a strong focus on environmental sustainability. In this role, the EIF pursues the objectives of the European Union to support innovation, research and development, entrepreneurship, growth and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

illimity Bank S.p.A.

illimity is the high-tech banking group founded and headed by Corrado Passera that was created with the aim of responding to specific market needs by way of an innovative and specialist business model. More specifically, illimity extends financing to high-potential SMEs, purchases distressed corporate loans and services these through its platform ARECneprix and provides digital direct banking services through illimitybank.com. illimity SGR, which sets up and manages alternative investment funds, the first of which dedicated to UTP loans, is also a member of the Group. The story of the illimity Group began in January 2018 with the launch of the special purpose acquisition company SPAXS S.p.A., which ended with a record 600 million euro being raised on the market. SPAXS subsequently acquired Banca Interprovinciale S.p.A., with the resulting merger between the two giving rise to “illimity Bank S.p.A.” which has been listed on the Italian Stock Exchange since 5 March 2019 (ticker “ILTY”), first on the MTA exchange and since September 2020 on the STAR segment.The banking group, headquartered in Milan, can already count on over 870 employees and ended 31 March 2023 with assets of around 6.1 billion euro.

EIF Provides €50 Million Guarantees to illimity Bank for SME Financing in Italy

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