Italian insurer Generali anchor investor in €100m financing for SMEs

The Extraordinary International Fund launched by Italy's Generali to deal with the COVID-19 emergency will underwrite a junior tranche of the innovative “Italianonsiferma” issue in the amount of €10 million.

As an anchor investor, the Generali Fund will underwrite a junior tranche of the issue, in order to support small and medium businesses and provide them with additional protection to the capital.

The issue will be managed by Credimi, a digital invoice financing platform for SMEs, in partnership with Banca Generali with the aim of rapidly mobilising Italian private savings in support of the real economy for a total amount of €100 million.

Companies will only begin to repay the capital they receive after 15 months, starting from September 2021, and will be able to use these resources, provided during the forced shutdown, to prepare for recovery.

Gian Maria Mossa, CEO of Banca Generali, said: “The consequences of the pandemic are paralysing the economic fabric, and for our part, we have tried to put in motion as quickly as possible an innovative tool that could bring savings closer to the needs of struggling businesses.

"The issue managed by Credimi combines the strengths of the financial system in a joint effort, with 80% covered by the public Guarantee Fund and now also the valuable contribution of the Generali Group through the Emergency Fund, acting as a driving force behind the system and allowing further guarantees to be given to customers.”

Banca Generali and Credimi set up a strategic partnership in 2019 exclusively to make medium-long term financing products available to all SMEs (as an alternative to traditional banking channels) with backing provided by the Mediocredito Centrale Guarantee Fund.