| Project Detail |
The EIB loan to Illimity will finance green transition projects of Italian small and medium sized enterprises (SMEs) operating in eligible sectors. Additionality and Impact Through this operation, additional resources will be channelled to finance eligible investments and short-term liquidity needs of Italian SMEs to weather post Covid19 recovery but also to cope with a new macroeconomic scenario of surge in energy price and higher inflation due to the impact of Ukrainian war. Moreover, the EIBs funding will contribute to support Italian SMEs in their green transition and will be critical for SMEs in Cohesion Regions particularly. The facility addresses an important market failure that is SMEs access to finance, which is driven by asymmetric information and which, despite improvement in recent years, still lags behind. This has become even more important in the context of the economic downturn caused by the War in Ukraine. Through this operation, additional resources will be channelled to finance eligible investments promoted by SMEs and Midcaps: the additional lending capacity provided through the EIBs intervention will generate positive effects on investments thanks to the availability of long-term financing and of overall lower financing costs and will send a positive signal to the market regarding their financial soundness and credit worthiness. The proposed loan is fully consistent with the EU objectives and responds to the definition of SME financing as a strategic priority objective of the Bank. The operation will also support the EUs and the Banks priority objectives in the climate and energy sector and the EIBs climate action and environmental sustainability objectives through the development of renewable energy (solar PV), energy efficiency, clean transportation (EV vehicles and charging infrastructure) and sustainable water and waste management projects promoted by SMEs and midcaps in several industries. It will also contribute to Italys 2030 decarbonisation targets of the 2030 NECP. The main Climate action element of the operation, renewable energy and energy efficiency projects, reduces negative carbon and air pollution externalities and increases comfort and air quality in the dwellings, social and public benefits that are not fully internalised by private investors. Overall, the projects are expected to yield good quality and results, thanks to avoided carbon emissions and employment creation. Moreover, the projects will be supported by adequate governance and capabilities of the FI. The operation is therefore also eligible under Article 309 (a) projects for developing less-developed regions (over 50%). Objectives The aim is to finance the working capital and investment needs of eligible SMEs in Italy. At least 30% of the loan will be allocated to SMEs located in the Southern Italian Regions (as EU Cohesion cross-cutting objective) and 20% of the facility to climate action and environmental sustainability projects. Sector(s) Credit lines - Credit lines Proposed EIB finance (Approximate amount) EUR 100 million Total cost (Approximate amount) not applicable |
