The European Investment Bank (EIB) and Milan-based Mediobanca have entered into a €100M agreement to expand credit access for small and medium-sized enterprises (SMEs) in Italy. The financing is expected to generate up to €200M in total credit for businesses.
The agreement includes support for microenterprises, female-led entrepreneurs, and companies located in cohesion regions.
A cohesion region refers to an area that qualifies for EU Cohesion Policy support. These are regions where economic development is below the EU average, and they receive funding to help reduce disparities across EU member states.
The contract was signed by EIB Vice-President Gelsomina Vigliotti and Mediobanca Group Chief Financial Officer Emanuele Flappini.
Funds will be distributed through Compass Banca, a subsidiary of Mediobanca.
Capital utilisation
The EIB will provide funds to Mediobanca, which will distribute them as new loans to Italian small businesses. The loans will support company operations and investment plans.
Of the total amount, 60 per cent will go to microenterprises with fewer than 10 employees. Another 20 per cent will be allocated to companies led by women or to projects related to gender equality.
And, a portion of the financing will also be directed toward businesses located in cohesion regions in central and southern Italy.
EIB Vice-President, Gelsomina Vigliotti, says, “Supporting access to credit for microenterprises, female-led entrepreneurs and businesses operating in less developed regions of Italy means investing in the future of the country.”
“Inclusion and territorial development are two key pillars of the EIB’s investment strategy: no real growth can prosper unless it is equally distributed, and no innovation exists if whole regions or segments of the working population are excluded. With this agreement, we aim to make the Italian economy more cohesive, dynamic and sustainable.”
Why Mediobanca?
Mediobanca Group operates in three main areas: wealth management, consumer banking, and corporate & investment banking. The group has been active in Italy for nearly eight decades.
The Group founded Compass in 1960, marking the beginning of consumer credit services in Italy. It was the first to introduce personal lending in the country and continues to provide financing solutions to households for personal purchases and other needs.
Speaking on the latest development, Mediobanca’s Group CFO, Emanuele Flappini, says, “Promoting the growth of Italian companies has always been our goal, a commitment that has gradually adapted to the changing needs of today’s economy, which now mostly comprises small and medium-sized businesses. We are therefore delighted to begin this collaboration with the European Investment Bank.”
“We aim to commit more funds to microenterprises, paying particular attention to female entrepreneurs and areas of the country facing major difficulties, and in this way develop a plan enabling us to express ‘responsible banking’ values, a distinctive factor of our DNA, which will help create a more cohesive, dynamic and sustainable Italian economy.”
Brief about EIB
The EIB, owned by EU Member States, provides long-term lending for investments aligned with EU policy goals. Its projects support economic activity, innovation, climate transition, and cohesion across regions.
In the past five years, the EIB Group has financed over €58B in projects in Italy. All supported initiatives align with the Paris Climate Agreement, and the Group does not finance fossil fuel investments.
The EIB is working toward a €1T investment goal in climate and environmental sustainability by 2030, with over half of its annual financing supporting projects tied to climate and environmental goals. About half of EIB financing in the EU is directed to cohesion regions.
