UniCredit’s Agreement With The European Investment Bank For A €2.5 Billion Financing For Italian SMEs

Clifford Chance and Legance have assisted, respectively, UniCredit and the European Investment Bank (EIB) in an agreement that provides for the activation of € 2.5 billion in investments by large, medium and small Italian companies to help them to face the challenge of post-Covid-19 recovery.

The agreement is the first in Italy to be supported by the Pan-European Guarantee Fund (EGF), one of the instruments activated by the EU to respond to the pandemic. The EGF is a guarantee structure supported by 22 EU member states, organized and managed by the EIB Group in collaboration with the main European financial intermediaries.

The structure of the agreement envisages that UniCredit will create in the coming months a portfolio of newly issued loans to large and medium-sized companies for a total value of € 1 billion.

The EIB will use the EGF to guarantee up to € 750 million of UniCredit’s new loan portfolio (guarantee equal to 75% of the entire portfolio).

The total amount of the new loans will be € 1.75 billion, which UniCredit will distribute through its branch network throughout Italy. However, thanks to co-financing and a prudent leverage effect, it is estimated that investments will be activated by the end of the year of approximately € 2.5 billion (including the companies’ own funds). According to estimates, a total of over 10,000 SMEs and a hundred large and medium-sized companies will be affected.

The Clifford Chance team that supported UniCredit in the transaction involved a cross-border team from the Global Financial Markets department of the London, Milan and Munich offices, consisting of partners Timothy Cleary (London) and Giuseppe De Palma (Milan) by counsel David Neu (Milan / Monaco) and Marco Convertini (Milan).

The Legance – Avvocati Associati team that assisted the European Investment Bank is made up of the partner Vittorio Pozzi and the senior associate Giorgia Foddis.

Involved fees earner: Timothy Cleary – Clifford Chance; Marco Convertini – Clifford Chance; Giuseppe De Palma – Clifford Chance; David Neu – Clifford Chance; Giorgia Foddis – Legance; Vittorio Pozzi – Legance;

Law Firms: Clifford Chance; Legance;

Clients: Banca Europea per gli Investimenti (BEI); Unicredit S.p.A.;

Read the full article on Global Legal Chronicle Italia