CDP and KfW sign a EUR 500 million agreement to promote Italian SMEs and energy-efficient infrastructure
Press Release from 2014-11-26 / Group
- KfW provides global loan to Cassa depositi e prestiti (CDP)
- Positive stimuli for employment and growth
KfW and Cassa depositi e prestiti (CDP) have signed an agreement to promote Italian SMEs and energy-efficient infrastructure. On the basis of the agreement, KfW provides global loan funds for a total amount of EUR 500 million to CDP: EUR 300 million will be used by CDP to sustain small and medium-sized enterprises (SME) in Italy with an on-lending mechanism, through commercial banks. CDP will use the remaining EUR 200 million to directly finance energy efficiency projects implemented by private companies in the public infrastructure sector.
"This global loan KfW is granting to its Italian partner institution CDP is another component of our long-standing European commitment and our cooperation with European promotional banks. Our expertise with respect to SME financing is not only in demand in Germany, but also throughout Europe. At the same time , the refinancing line to our Italian partner institution gives a considerable impetus for the creation of jobs," explained Dr Ulrich Schröder, Chief Executive Officer of the KfW Group.
"This is the result of the work CDP has been long conducting internationally to attract investments and financing to Italy to bolster its economy, SMEs, national infrastructure, and create jobs, says Franco Bassanini, Chairman of CDP. As you can see, we don’t attract capital and financing only from China and Arab countries from the Gulf, but also from the biggest European countries. The total value of the agreements signed this year, made up of equity and credit, is worth more than 6 billion euros.”
"The agreement is the result of fruitful cooperation and the deepening of the bilateral relationship between Cassa depositi e prestiti and KfW”, explains the CEO of CDP, Giovanni Gorno Tempini. “It is part of the funding diversification policy put forth by the Cassa depositi e prestiti, and is of particular importance as it attracts to Italy new resources from important foreign institutional investors like Kfw, to be made available for SMEs for infrastructure in the field of energy efficiency.”
The deepening of the existing good cooperation between CDP and KfW in the sense of a strategic partnership on different promotional topics is at the core of the recent loan agreements.
CDP is providing the funds at favourable conditions from the global loan to Italian on-lending commercial banks, which in turn issue loans to small and medium-sized enterprises in Italy. Italian SMEs can therefore benefit from improved access to loans and the interest rate advantage of KfW’s financing, as well as make hitherto deferred investments. In addition, CDP's funding basis is being supported in order to contribute to the financing of energy efficiency projects implemented by private companies in the public infrastructure segment.
Italian private companies can request, with immediate effect, loan applications from the on-lending commercial banks.
Cassa Depositi e Prestiti (CDP) is a joint-stock company under public control, with the Italian government holding 80.1% and a broad group of bank foundations holding 18.4%, the remaining 1.5% in treasury shares. Cassa Depositi e Prestiti manages a major share of the savings of Italians – postal savings – which represent its main source of funding. CDP uses its resources to pursue its institutional mission to support the growth of Italy.