EIB backs €125M bond to fund Italian SMEs
What's the deal? The European Investment Bank (EIB) has fully subscribed a €125 million covered bond issued by BCC Banca Iccrea, channelling fresh financing to small and medium-sized businesses across Italy. The money will flow through the cooperative banks of the BCC Iccrea Group.
How it's structured? The bond is listed on the Luxembourg Stock ExchangeDealroom has a profile for this one. Try Dealroom → and carries an Aa2 rating from Moody's. It has a seven-year maturity and a fixed-rate yield of 4.052%, with a final spread of mid-swap plus 43 basis points.
Where the money goes? At least 70% of the funds are reserved for SMEs with fewer than 250 employees, with the rest available to mid-cap companies employing between 250 and 3,000 people. A further €31.25 million — at least 25% of the total — is earmarked for agriculture and bioeconomy projects.
Why now? Access to affordable capital remains a key concern for many enterprises. The deal gives businesses financing on more favourable terms to pursue investment, modernisation, and growth plans.
What they said? EIB Vice-President Gelsomina Vigliotti said the partnership gives "particular attention to agriculture and the bioeconomy," calling both sectors important for sustainable development and social cohesion. BCC Iccrea Group General Manager Mauro Pastore said the agreement provides "an additional tool to support SMEs and mid-cap companies pursuing growth opportunities."
The signal: The deal deepens an existing relationship between the EIB and the BCC Iccrea Group, with covered bonds emerging as a route to mobilise capital for smaller firms. By spreading funds across company sizes and prioritising agriculture, the EIB is tying its lending to sustainable, locally rooted growth.
Read more: devdiscourse.com
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