Sustainability at the Forefront: EIB and Crédit Agricole Italia Inject €400 Million into Business Expansion

Sustainability at the Forefront: EIB and Crédit Agricole Italia Inject €400 Million into Business Expansion ©juststock/ iStock

(IN BRIEF) The European Investment Bank (EIB) and Crédit Agricole Italia have signed a €400 million agreement to support small and medium-sized enterprises (SMEs) and agricultural companies. A significant portion of this funding, over 25%, will be directed towards environmental sustainability and energy efficiency initiatives, highlighting the commitment of both institutions to the circular economy and ESG concerns. The agreement involves the EIB purchasing a €400 million premium label covered bond issued by Crédit Agricole Italia, with the funds made available to customers for new projects. SMEs, mid-cap companies, and agri-food sector businesses will benefit from preferential rates to boost their renewable energy adoption and energy efficiency efforts. This partnership underscores the EIB and Crédit Agricole Italia’s dedication to economic growth and sustainability in Europe.

(PRESS RELEASE) LUXEMBOURG, 9-Oct-2023 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, and Crédit Agricole Italia have solidified their commitment to supporting small and medium-sized enterprises (SMEs) and agricultural companies with a €400 million agreement. This collaboration is geared toward facilitating new investments, with a significant emphasis on environmental sustainability and energy efficiency transitions. Over 25% of the allocated funds will contribute to advancing the circular economy and addressing environmental, social, and governance (ESG) concerns.

The cornerstone of this operation revolves around the EIB’s full private placement purchase of a premium label covered bond valued at €400 million, issued by Crédit Agricole Italia under its covered bond program. This 5-year bond will be redeemed at maturity, and its coupon is tied to the 6-month Euribor rate. Crédit Agricole Italia will make the entire sum available to its clientele.

The beneficiaries of this financing initiative encompass SMEs (with up to 250 employees), mid-cap companies (ranging from 250 to 3,000 employees), and agri-food sector enterprises. These entities will gain a financial advantage through preferential rates offered by the EIB, enabling them to embark on new projects and ventures. The application process will be managed directly by Crédit Agricole Italia and its subsidiaries. Notably, a minimum of €100 million (equivalent to 25% of the total agreement amount) will be dedicated to supporting customers in their transition towards renewable energy adoption and the implementation of energy efficiency initiatives.

This strategic partnership between the EIB and Crédit Agricole Italia exemplifies their unwavering dedication to fostering economic growth, sustainability, and ESG principles within the European business community.

“With interest rates on a sustained upward trajectory, small and medium-sized enterprises are finding it increasingly difficult and expensive to access new finance,” said EIB Vice-President Gelsomina Vigliotti. “This operation shows that the EIB is in touch with Italian business, helping to provide new financing on favourable terms to companies wishing to invest in a more sustainable future.”

“Today’s agreement with the EIB shows our commitment to actively supporting Italian businesses and the agri-food sector, making them leaders in the international marketplace,” said Crédit Agricole Italia CEO and Senior Country Officer Giampiero Maioli. “We strive to cement our role as a reliable partner for all companies that — like us — are focusing their efforts on a sustainable energy transition.”

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments that contribute to EU policy. The Bank 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 €45 billion in financing for projects in Italy.

Crédit Agricole Italia

Crédit Agricole Group is one of the world’s top ten banking groups with 11.5 million members, and operates in 46 countries including Italy, its second domestic market. All of its business lines are present in Italy: from commercial banking to retail loans, from corporate and investment banking to private banking and asset management, and from the insurance sector to high-wealth individuals. Cooperation between the commercial network and business lines enables a broad and integrated operation to serve 5.9 million customers via 1 600 points of sale and over 16 400 employees, with increasing support for the economy of €97 billion in financing. In addition to Crédit Agricole Italia, the group also includes companies covering corporate and investment banking (CACIB), specialist financial services (Agos, CA Auto Bank), leasing (Crédit Agricole Leasing, part of Crédit Agricole Italia) and factoring (Eurofactor), asset management and asset services (Amundi, CACEIS), insurance (Crédit Agricole Vita, Crédit Agricole Assicurazioni, Crédit Agricole Creditor Insurance) and wealth management (CA Indosuez Wealth Management in Italy and CA Indosuez Fiduciaria).

Media contacts:

Lorenzo Squintani
l.squintani@eib.org
+352437982528

Press Office
press@eib.org
+352 4379 – 21000

SOURCE: European Investment Bank