Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF), in collaboration with Cassa Depositi e Prestiti (CDP) and KfW, addressed the challenge of enhancing access to credit for small and medium-sized enterprises (SMEs) in Italy. The specific issue faced was the need for SMEs to secure long-term funding, which is often difficult due to stringent lending criteria and market conditions.
To tackle this, the EIF, CDP, and KfW executed a transaction that involved the securitization of leases to SMEs, originating from Iccrea Banca Impresa, a cooperative credit bank. The institutions collectively invested EUR 65 million by purchasing mezzanine notes, which were backed by a first demand guarantee from the EIF. This initiative was part of the ENSI (EIF-NPIs Securitisation Initiative), aimed at facilitating SMEs' access to credit in alignment with the Juncker Plan.
As a result of this collaboration, Iccrea Banca Impresa was able to raise long-term funding, which is projected to be reinvested into granting new leases to Italian SMEs over the next two years. This strategic partnership not only improved the financial landscape for SMEs but also encouraged the use of securitization as a viable funding instrument, thereby enhancing the overall credit availability in the market.