This article is published in association with European Investment Bank.
- New agreement between the EIB Group and BNL BNP Paribas to mobilise €335 million, supporting the investments and working capital needs of around 300 Italian companies.
- More than €167.5 million for the economic development of cohesion regions and around €100 million for the agrifood sector
- Synthetic mortgage securitisation transaction promoted by BNL BNP Paribas, for which the EIF has agreed to guarantee a mezzanine tranche counter-guaranteed by the EIB
The EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), and BNL BNP Paribas have signed a new agreement to mobilise €335 million for the real economy, supporting the investments and working capital needs of around 300 Italian companies. The agreement was announced by EIB Vice-President Gelsomina Vigliotti and BNL CEO and Head of the BNP Paribas Group in Italy Elena Goitini.
The transaction is part of a long-term, consolidated partnership between the EIB Group and BNL BNP Paribas, reinforced by the four previous securitisation transactions conducted since 2018. Overall, these initiatives have helped to support more than 1 000 businesses and mobilise more than €2.3 billion in new financing for the real economy.
From a financial perspective, the agreement provides for a synthetic securitisation of mortgage loans promoted by BNL BNP Paribas. In particular, the European Investment Fund has guaranteed a mezzanine tranche of €111.6 million, fully counter-guaranteed by the EIB. This structure enables BNL to free up regulatory capital and generate new lending capacity totalling €335 million, intended for small and medium-sized Italian companies with fewer than 250 employees and mid-caps with fewer than 3 000 employees.
In addition to supporting business investment, the agreement pursues two strategic objectives for the country’s growth: strengthening economic development in southern Italy, which will help to reduce regional disparities; and supporting the agrifood sector, which accounts for around 15% of Italy’s GDP and plays a key role in terms of employment, sustainability and regional development. Around 50% of the total amount, or €167.5 million, will be allocated to projects or companies active in cohesion regions, while about 30%, amounting to over €100 million, will be reserved for businesses in the agrifood sector.
“This agreement confirms the EIB Group’s commitment to supporting entrepreneurship in Italy. Thanks to effective financial instruments and consolidated cooperation with the banking system, we can mobilise significant resources to strengthen the real economy, promote territorial cohesion and support strategic sectors for the country such as the agrifood industry,” said EIB Vice-President Gelsomina Vigliotti.
“Promoting entrepreneurship and the ability to support the development of production activities are at the heart of our strategy as a bank and as a group. This cooperation with the EIB Group enables us to provide resources and know-how to enhance the competitiveness and innovation of entrepreneurship in Italy, helping it – in a spirit of partnership – to manage the green and digital transitions and enhance the Made in Italy brand,” said BNL CEO and Head of the BNP Paribas Group in Italy Elena Goitini.
Background information:
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight key priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world. The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment. Fostering market integration and mobilising investment, the funds made available by the Group unlocked over €100 billion in new investment for Europe’s energy security in 2024 and mobilised a further €110 billion for startups and scale-ups. Around half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. High-quality, up-to-date photos of EIB headquarters for media use are available here.
The European Investment Fund (EIF) is part of the European Investment Bank Group (EIB Group). It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, the EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.
BNL BNP Paribas has been in business for over 110 years and is one of the leading Italian banking groups, operating nationwide. It offers a wide range of products and services to meet the multiple needs of its customers (private, corporate and public administration). Since 2006, BNL has been part of the BNP Paribas Group, which is present in 64 countries, employing around 178 000 staff members, including some 145 000 in Europe, where it has four domestic markets: Belgium, France, Italy and Luxembourg. BNP Paribas holds key positions in its major business sectors: “Commercial, Personal Banking & Services”; “Investment & Protection Services” and “Corporate & Institutional Banking”. Like the Group as a whole, BNL BNP Paribas is particularly committed to economic, social and environmental sustainability – a strategy that embodies the bank’s determination to use its business to have a positive impact on customers, staff and the community as a whole, helping to build a more sustainable future.
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