Italy: EUR 130 million for Sicilian enterprises at preferential conditions under JEREMIE

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EIF signs two agreements with BNL BNP Paribas Group and UniCredit

The EIF has signed two agreements with both BNL BNP Paribas Group and UniCredit to support growth and strengthen entrepreneurship in Sicily. These are the first two agreements signed with financial intermediaries in Sicily under the JEREMIE initiative managed by the EIF.

Thanks to JEREMIE, EIF will make available EUR 44 million to BNL and EUR 9 million to UniCredit. In addition, the two banks undertake to provide own resources to the beneficiary SMEs, thereby generating a leverage effect which will double the funding available to Sicilian entrepreneurs, totaling about EUR 130 million. It is expected that in the next 24 months over 1,000 local SMEs and micro-entrepreneurs, looking to start-up or to expand their businesses, will benefit from loans and micro-loans at preferential conditions.

In particular, BNL will provide loans for up to EUR 400,000, for a total amount of EUR 110 million, to SMEs active, among others, in the following sectors: ICT, automotive, biotechnologies, energy efficiency and renewable energies. UniCredit will offer micro-loans up to EUR 25,000, for a total amount of EUR 20 million, to eligible micro-entrepreneurs, in particular artisans and those active in retail trade.

Representatives signing the agreement today in Palermo in the presence of the Regional Councillor for Economy, Gaetano Armao, and the Regional Councillor for Production Activities,  Marco Venturi, were: Mr. Richard Pelly, EIF Chief Executive, Francesco Acito and Giovanni Notaro, respectively BNL BNP Paribas Group Head of Corporate Regional Direction and Manager Multilateral Organization Loans, and on behalf of UniCredit, Roberto Bertola and Stefano Cocchieri, respectively UniCredit Head of Territory Sicily and Head of Soft Loans, Contributions & Subsidies Unit.

EIF Chief Executive Mr. Richard Pelly said: “We are pleased to cooperate with BNL and UniCredit under JEREMIE in Sicily and are convinced that this agreement will contribute to further enhance entrepreneurship in the Region, stimulating investments and growth. These operations reaffirm EIF’s broad support to Italian SMEs."

Mr. Francesco Acito added: "With this initiative, BNL reaffirms its wish to be a strong reference for the Italian entrepreneurial system, offering both its expertise at a national level and the know-how of an international Group such as BNP Paribas, active in over 80 countries worldwide. This allows us to both support SMEs in their daily activities and in implementing their development projects in Italy and abroad."

Roberto Bertola concluded: "UniCredit, the first bank in Sicily with more than 400 branches and about 25% of market share, is strongly committed to supporting the island's economy in this difficult economic situation.  By providing financing at favourable condition thanks to JEREMIE, we will be able to provide a tangible support for SMEs, which account for about 80% of the Sicilian businesses, helping them as well going international through our broad network, with branches in 22 EU countries. Today we have taken a significant step towards strengthening our role of local bank."

The agreements result from a due diligence process following two “Calls for Expression of Interest”, launched by the EIF, which attracted a high level of interest from financial intermediaries operating in the region. EIF is currently selecting further financial intermediaries to provide funding to social businesses under an additional JEREMIE Holding Fund in Sicily managed by the EIF and financed through European Social Fund (ESF).

About JEREMIE (Joint European Resources for Micro to Medium Enterprises)

JEREMIE is a joint initiative launched by the European Commission (DG Regional Policy) and the European Investment Bank Group to improve access to finance for SMEs in the EU within the Structural Funds framework for the period 2007-2013. JEREMIE enables the EU Member States and Regions to deploy money from the Structural Funds and also national resources into holding funds that can finance SMEs in a flexible and innovative way. The new initiative aims at developing and fostering the role of entrepreneurship within the EU in order to meet the objectives of the Lisbon agenda and help structural funds to deliver greater benefits to the market. In Europe, to date, the EIF has signed 8 national and 5 regional Holding Fund agreements.

Through the JEREMIE Holding Fund in the Sicily Region, the EIF manages funds made available from the European Regional Development Fund and related public expenditure awarded for utilisation under the JEREMIE initiative. As part of the Regional Operational Programme in Sicily (“POR Sicilia FESR 2007-2013”), the Sicily Region has agreed to dedicate resources to the implementation of the JEREMIE initiative with EIF.

EIF's central mission is to support Europe's micro, small and medium-sized businesses by helping them to access finance.  EIF designs and develops equity (venture and growth capital), guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s equity investments aim to leverage its own funds and those managed on behalf of mandators. EIF’s total net commitments to private equity funds amounted to over EUR 5.4bn at end 2010. With investments in over 350 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments.Acting as a "fund of funds", the EIF has a significant presence in Italy where, since 1997, has invested around EUR 550 m in 31 Venture Capital and Private Equity funds focused on SMEs. The activity has intensified over the past five years, with about EUR 290 m invested in 13 funds mobilising a total of EUR 2.2 bn. The EIF commitment in guarantees totalled over EUR 14.7bn in close to 160 operations at end 2010, positioning it as a major European SME loan guarantees actor and a leading micro-finance guarantor. In Italy, through its guarantee operations, the EIF has indirectly supported more than 250.000 SMEs.

BNL is a leading Italian Banking Group, among the best-known Italian brands, established in 1913. Through a nationwide network of over 950 branches, out of which 34 are based in Sicily, BNL offers a wide range of financial products and services, from traditional to more innovative, meeting the needs of its customers (individuals and families, businesses and public administration). Since 2006 BNL belongs to BNP Paribas Group, one of the strongest banks in the world according to Standard & Poor's. The Group is active in over 80 countries with more than 200,000 employees, of which more than 160,000 are based in Europe, operating - through retail banking - in four domestic markets: Belgium, France, Italy and Luxembourg. BNP Paribas holds key positions in three main sectors: Retail Banking, Investment Solutions and Corporate & Investment Banking.

About UniCredit  

UniCredit is a major international financial institution with strong roots in 22 European countries and an overall international network present in approximately 50 markets, over 9,600 branches and 160,000 employees as of 31 March 2011. In the CEE regions, UniCredit operates the largest international banking network with nearly 3,900 branches. The Group operates in the following countries: Austria, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Germany, Hungary, Italy, Latvia, Lithuania, Kazakhstan, Kyrgyzstan, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey and Ukraine.

• EIF: Emanuela Schiavoni, Tel.: (+352) 42 66 88 326 - e.schiavoni@eif.org
• BNL Gruppo BNP PARIBAS: Francesco Chiurco, Maurizio Cassese, Tel. (+39) 064702 720915 - press.bnl@bnlmail.com
• UniCredit: Alberto Morici, Tel. (+39) 0667078653 - Alberto.Morici@unicredit.eu;
• Biancamaria Verde, Tel. (+39) 0667078658 - Biancamaria.Verde@unicredit.eu
• Regione Sicilia : Francesco Inguanti, Tel. (+39) 3804799689 -  f.inguanti@regione.sicilia.it