Brussels, 19/04/2010 (Agence Europe) - The European Investment Bank (EIB) has just signed a €250 million finance contract with the UBI Banca group targeting small and medium-sized Italian businesses (SMEs). Technically, the transaction consists of subscription by the EIB of a covered bond issued by UBI. This is the first time that the EIB has mounted an operation in Italy via the covered bonds instrument, which was launched on the market in 2007.
This €250 million funding constitutes the first tranche of an already approved €500 million EIB loan to UBI Banca earmarked entirely for SMEs. SME projects mainly in the industry, services and tourism sectors will be eligible for loans of up to €12.5 million. The funds will be distributed to all members of the UBI group. “This operation will strengthen our relations with the UBI group, the EIB's customary partner for financing small businesses in Italy,” said Dario Scannapieco, EIB Vice-President responsible for financing operations in Italy, Malta and the Western Balkans in a press release. “It is also important inasmuch as this is the first time that the EIB has mounted an operation in our country via the covered bonds instrument - a technical innovation that enables us to broaden the range of tools for partnering with the banking sector to finance SMEs, and one which we believe will be widely used in Italy's credit market,” he went on to say. (O.L./transl.rt)