- The €60 million EIB loan aims to unlock investments of at least €165 million in the real economy.
- The funds will support three priorities: women-led small businesses, projects in cohesion regions, and better services and economic empowerment for refugees.
- The EIB will also provide technical assistance with financial backing from the InvestEU Advisory Hub.
European Investment Bank (EIB) Vice-President Gelsomina Vigliotti and Banca Etica President Anna Fasano have signed a €60 million agreement with the main goals of promoting labour market integration and better services for refugees, making it easier for women-led companies to access finance and supporting projects in cohesion regions. The operation is expected to help stimulate €165 million of investment in the real economy, creating a lasting positive impact on society.
“This agreement is a key step forward in backing three important pillars of the future of Italy and Europe: gender equality, better living conditions and social inclusion for refugees, and economic development in southern Italy,” said EIB Vice-President Gelsomina Vigliotti. “Via our financial support and advisory services, the EIB is committed to supporting the real economy, fostering inclusive growth and a more equal and sustainable society.”
“Banca Etica's goal is to finance the social economy by supporting the businesses and people most at risk of financial exclusion, including refugees and women. It is important for us to be the first Italian bank to sign an agreement with the EIB to do even more in this domain. It is also a recognition of the specific expertise we have developed over 25 years of working to provide financial services to high social impact initiatives that struggle to secure credit in the mainstream financial system,” added Banca Etica President Anna Fasano.
In concrete terms, the agreement is split into three sections aiming to support the same number of priorities. The first is that at least 30% of the EIB funds will go to women-led small and medium-sized enterprises (SMEs). This operation aims to narrow the gender gap, making it easier for women entrepreneurs to access finance and help for growing their businesses.
The second section states that at least 30% of the funds will be allocated to projects aiming to improve infrastructure and social services for refugees and helping refugees to enter the labour market. The goal is to create better living conditions and foster the economic empowerment of refugees via investment in housing, education and vocational training.
The third and final section states that at least 30% of the resources will go to SME projects in cohesion regions, helping to strengthen the economy and society, create job opportunities and reduce regional disparities.
The EIB will also provide free technical assistance under the Social Inclusive Finance Technical Assistance (SIFTA) programme. This is being financed by the InvestEU Advisory Hub and will help Banca Etica to allocate resources to women-led SMEs, refugee services and businesses operating in cohesion regions. Launched in 2022, the SIFTA programme has supported around 60 microfinance and credit institutions investing in high social impact companies in over 20 EU countries, helping with investment preparation, portfolio analysis and the creation of a pipeline of operations.
Background information
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments that contribute to EU policy. The Bank finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). In the past five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.
The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union's strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
Banca Etica is the first and so far only Italian bank entirely dedicated to ethical finance, operating for 25 years throughout the country via a network of branches and agents and via home and mobile banking services. It manages the savings of responsible organisations and individuals, using them to finance projects supporting collective well-being. It currently has 48 000 members and €92 million in share capital, savings holdings of over €2.5 billion and loans of over €1.2 billion to the initiatives of organisations, families and companies in the areas of social cooperation and innovation, international cooperation, culture and quality of life, environmental conservation, responsible tourism, organic farming, right of housing and law. Banca Etica is part of the main international ethical finance networks: Global Alliance for Banking on Values (GABV) and European Federation of Ethical and Alternative Banks and Financiers (FEBEA).
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