- The European Investment Bank subscribes to a €150 million covered bond issued by Banca Popolare di Sondrio, mobilising over €300 million in total to be allocated to small and medium-sized agribusinesses in Italy.
- Through a system of double intermediation, which involves four other small and medium-sized banks belonging to the Luigi Luzzatti consortium, a broad distribution of loans throughout the country is guaranteed.
- This is the first operation signed by the EIB in Italy under the €3 billion financial package launched in 2024 to support small and medium-sized agribusinesses.
The European Investment Bank (EIB) and Banca Popolare di Sondrio have signed an agreement aimed at mobilising over €300 million for small and medium-sized enterprises (SMEs) and mid-caps active in the agriculture and bioeconomy sectors in Italy, with a particular focus on green projects. This is the first operation signed by the EIB in Italy as part of the €3 billion package approved by the EIB last year to support small and medium-sized businesses active in the agriculture sector.
“We are pleased to sign with Banca Popolare di Sondrio the first agreement in Italy under the EIB’s €3 billion financial package entirely dedicated to supporting small and medium-sized agribusinesses, with a particular focus on young farmers and women-led businesses. The aim is to provide concrete resources to support growth, foster innovation and guide the sector towards a more sustainable and resilient agricultural future," said EIB Vice-President Gelsomina Vigliotti.
“We are proud of this initiative, which consolidates Banca Popolare di Sondrio’s partnership with the EIB and makes a tangible contribution to supporting the agriculture and agro-industrial sectors, the pride of Made in Italy. In line with the new 2025-2027 business plan ‘Our Way Forward’, we confirm our focus on the primary sector by offering products and services dedicated to the agri-food industry. Given the added value that the biodiversity of the banking system can offer, we are sharing this project with other banks that can increase the EIB’s reach in passing on its funds, both in geographical terms and by giving smaller farms access to finance. I wish to thank the Luigi Luzzatti consortium, promoter of this initiative, Banca Popolare di Fondi, Banca Popolare di Lajatico, Banca Popolare di Puglia e Basilicata and Banca Popolare Pugliese, all of whom – in a relationship based on a common identity matrix – shared our objectives and commitments. We will thus be able to provide our customers with new opportunities for development and growth, which will benefit the entire Italian agri-food value chain,” said Managing Director of Banca Popolare di Sondrio Mario Alberto Pedranzini.
In concrete terms, the operation provides for a new €150 million covered bond issued by Banca Popolare di Sondrio to be fully subscribed by the EIB, supplemented by a further €150 million allocated by the five banks involved in the initiative, bringing total funds available to businesses to €300 million. The underwriting of the covered bond will enable projects to be financed in the agriculture sector, such as the construction of plants for the production of energy from agricultural renewable sources, investments in soil improvement including through new cultivation techniques and less use of water for irrigation, and the construction and upgrading of stables to improve animal welfare. Small and medium-sized businesses will be able to access financing with maturities suited to the investment business cycle, benefiting from more favourable financial conditions thanks to the EIB's participation. The operation will also stimulate private investment, generating new employment opportunities and fostering the growth of a more sustainable and resilient industrial ecosystem.
The initiative uses a system of double intermediation, which, in addition to Banca Popolare di Sondrio, involves other financial institutions belonging to the consortium of Luigi Luzzatti cooperative banks, such as Banca Popolare di Fondi, Banca Popolare di Lajatico, Banca Popolare di Puglia e Basilicata and Banca Popolare Pugliese. This ensures a broad distribution of loans throughout the country. At least 30% of the funds can be allocated to projects in regions that are the focus of EU economic and social convergence programmes, such as in the south of the country. A further 30% of the funds will go to projects helping to promote climate action, the efficient use of water resources and the protection of biodiversity.
Background information
EIB
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 over 900 projects worth nearly €89 billion in 2024, boosting Europe’s competitiveness and security. The EIB Group signed 99 operations totalling €10.98 billion in Italy in 2024, unlocking almost €37 billion of investment in the real economy. 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.
Banca Popolare di Sondrio
Founded in Valtellina in 1871, Banca Popolare di Sondrio (BPS) was one of the first people's banks to apply the cooperative model of Luigi Luzzatti. Over the years, the bank's activity has extended to the entire country and today the Group has over 3 700 employees. Banca Popolare di Sondrio, with a long history of growth, values and culture, is at the head of a banking group with more than 500 branches, over 950 000 customers and 137 000 shareholders. On the strength of its solid founding principles that have inspired a balanced and profitable business model, the bank works with determination and a strong appetite for innovation, constantly adapting to new scenarios, to continue carrying out its activities effectively for the benefit of customers and all stakeholders.