BAKU, Azerbaijan, March 12. The European Investment Bank (EIB) and Banca Ifis, an Italian finance company, are teaming up to provide 300 million euros in new funding to support innovative investments by small and medium businesses (SMEs) and mid-caps, Trend reports.
According to the EIB, it is extending a 150 million euro loan to Banca Ifis, primarily targeting leasing loans that back innovative projects under the National Transition Plan 4.0. Banca Ifis, in turn, will ensure the distribution of an additional 150 million euros, providing 300 million euros available for businesses in total.
This collaboration marks the fifth agreement between Banca Ifis and the EIB, representing the EU bank's first dedicated operation with an Italian bank solely focused on driving the innovative transition of small and medium businesses.
Over the past four years, the EIB and Banca Ifis have collectively unlocked a total investment of 700 million euros through their collaborative efforts.
Thus, the EIB is set to provide Banca Ifis with 150 million euros through two contracts, each valued at 75 million euros and spanning an 18-month period.
This new credit line, featuring more favorable interest rates, is open to SMEs (with a combined workforce of up to 249 employees) and mid-caps (with a combined workforce of up to 2,999 employees). It aims to facilitate financing for innovation-focused projects or the acquisition of innovative goods aligned with the government’s National Transition Plan 4.0. This includes financial leasing operations with a minimum term of 24 months.