Intesa Sanpaolo and sace launch the first s-loan with green guarantee to counter climate change

PRESS RELEASE

INTESA SANPAOLO AND SACE LAUNCH THE FIRST S-LOAN

WITH GREEN GUARANTEE TO COUNTER CLIMATE CHANGE

· Intesa Sanpaolo and SACE strengthen their collaboration to support businesses in green and sustainable transformation processes

· The S-Loan Climate Change, backed by 80% green guarantees from SACE, expands the range of loans aimed at improving the enterprise ESG profile

· Impact finance: €60,000 already raised to requalify 28 children's parks, thanks to the joint donation mechanism linked to each S-Loan

Milan, 25 August 2021 - Intesa Sanpaolo strengthens its partnership with SACE to enable Italian companies to access green financing and launches the S-Loan Climate Change, the first loan designed for SMEs and MID-Caps that intend to invest to counter the effects of climate change and reduce their environmental impact through projects for sustainable transformation.

The S-Loan Climate Change is a unique initiative in the banking sector and comes as part of the strategic programme Motore Italia which, launched this year, includes investments for the sustainable transition, in line with the guidelines of the PNRR (National Recovery and Resilience Plan).

After having conceived and proposed the S-Loan ESG and the S-Loan Diversity, aimed respectively at sustainability investments on all environmental, social and governance issues and at those to promote gender equality, the S-Loan Climate Change offers a new tool, created to direct the investment choices of SMEs and MID-Caps towards the reduction of their impact on climate change.

Thanks to the renewed partnership with SACE, the new S-Loan Climate Change provides a combined 80% SACE guarantee to finance green investment projects up to an amount of €15 million and for a maximum term of 20 years. The SACE guarantee is issued through a simplified and digitised process to benefit domestic projects that are decisive for the future and in line with the evaluation criteria and taxonomy set by the EU in the Technical Expert Group on sustainable finance, such as: mitigation and prevention of climate change, reduction of polluting activities, protection of water and marine resources, protection and restoration of biodiversity and ecosystems and circular economy. The guarantee is intended for companies with a turnover, at individual company level, of up to €500 million.

As part of a broader process of standardising green operations, SACE has simplified and digitised the processes for operations that require guarantees for amounts up to €15 million of financing, which are activated through a dedicated portal.

This agreement adds a further step to the profitable collaboration between SACE and Intesa Sanpaolo, activated to deal with the emergency generated by the pandemic in 2020, which has made it possible to provide companies that are clients of the Banca dei Territori with loans for over €1.5 billion through the Italy Guarantee instrument.

The projects of small and medium-sized Italian enterprises that can be financed thanks to S-Loan Climate Change are linked to environmental sustainability and, specifically, aim to achieve some important objectives, shared in advance with the Banking Group and SACE:

- electricity procurement from renewable sources or bioenergy;

- introduction of a Green Procurement Policy on purchasing, transport and energy;

- achievement of Carbon Neutrality;

- adaptation of a portion of the company's real estate assets to green building standards;

- introduction of new vehicles with reduced environmental impact in the company fleet;

- introduction of initiatives for the protection and restoration of ecosystems.

If at least two pre-set objectives are reached, the double mechanism provided by the S-Loan formula is activated, which includes a premium for the company in terms of the cost of financing and a donation from the bank to support charitable projects, in which the financed company can also participate in turn in a virtuous circle of its own sustainability and that of third parties. For example, through the mechanism of joint donation, the project "A scuola di Inclusione: giocando si impara" (At school for inclusion: learning by playing), coordinated by the Unione Italiana Lotta alla Distrofia Muscolare (Italian Union for the fight against muscular dystrophy), was identified for the construction and redevelopment of 28 playgrounds for children throughout Italy. The donations, which already amount to €60,000, are collected on the Intesa Sanpaolo Group's crowdfunding platform (www.forfunding.intesasanpaolo.com)

The environmental, social and governance (ESG) sustainability of companies increases the value of their competitiveness; for this reason, in addition to the allocation of €6 billion to finance circular economy projects, Intesa Sanpaolo has allocated €2 billion for S-Loans, the specific line of financing created in 2020 to support the initiatives of companies towards sustainable transition with a bonus mechanism for the achievement of specific broad-based sustainability objectives. Of this, more than €1.5 billion has already been disbursed for SMEs.

Intesa Sanpaolo has always been very attentive to sustainability and ESG investments, which are included among the objectives of the Business Plan that is currently being completed. Attention to the environment and social inclusion are very important aspects for the sustainable growth of the country. As part of this, Intesa Sanpaolo has adopted policies to reduce lending to the coal and unconventional oil & gas sectors. The adoption of these measures is an important additional step by the Bank in combating climate change, part of a multi-year and articulated sustainability strategy. From now until 2026 Intesa Sanpaolo plans medium-long term disbursements of over €410 billion, of which €120 billion destined for SMEs, with which to actively contribute to Italy's economic recovery in close correlation with the objectives of the PNRR approved by the European Commission.

SACE plays a leading role in the Italian ecological transition. Since the start of operations linked to the Green New Deal last December until 30 June 2021, projects worth €1.5 billion have been financed thanks to its intervention. The company led by Pierfrancesco Latini has already met more than 300 potential beneficiary companies of the instrument. Attention to environmental and sustainability issues also confirmed by the adoption of a Climate Change Policy by SACE, including specific measures aimed at reducing emissions and banning support to projects with a potential bad impact on the environment.

"This agreement with Intesa Sanpaolo is part of SACE's commitment to support the implementation of the Green New Deal on the Italian territory and testifies to the path of digitisation and simplification of our offer for the benefit of financial partners and companies," said Pierfrancesco Latini, Ceo at SACE. "As envisaged by the Simplification Decree Law of last July, in fact, SACE can issue green guarantees on domestic projects able to facilitate the transition towards an economy with a lower environmental impact, integrate production cycles with low-emission technologies for the production of sustainable goods and services and promote initiatives aimed at developing a new mobility with lower polluting emissions. It is a mandate that we carry forward with commitment and responsibility in support of the Italian entrepreneurial fabric and alongside sustainable finance".

Stefano Barrese, Chief of the Banca dei Territori Division at Intesa Sanpaolo, stated: "Thanks to our fruitful relationship with SACE, we are today introducing a new instrument in the S-Loan range that will be used to finance new projects for the sustainable development of companies and, at the same time, to improve the impact on the environment of the companies themselves, which, in turn, will drive the recovery of our economy. With a view to containing the impact that we all have on climate change and thanks to the joint perspective of responsible growth that unites a private company like Intesa Sanpaolo and a major public operator like SACE, we are confident of activating new additional instruments that are increasingly suited to the new cycle and respect for the environment and in line with the green transition indicated by the PNRR".

Press Information

Intesa Sanpaolo

SME & Retail Banking and Local Media

stampa@intesasanpaolo.com

https://group.intesasanpaolo.com/it/sala-stampa/news

SACE | Press Office

T. +39 06 6736888

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https://www.sace.it/

Intesa Sanpaolo

Intesa Sanpaolo is the leading Bank in Italy and one of the soundest and most profitable banks in Europe. It offers commercial, corporate investment banking, asset management and insurance services. The Intesa Sanpaolo Group has approximately 13.5 million customers in Italy who are assisted through both digital and traditional channels and 7.2 million customers abroad with subsidiaries operating in commercial banking in 12 countries in Central Eastern Europe and Middle Eastern and North African areas and an international network of specialists in support of corporate customers across 25 countries. Intesa Sanpaolo is recognized as one of the most sustainable banks in the world. For the Group, creating value means being a driver for growth, for the benefit of both society and the economy. As regards the environment, the Group has set up a 6-billion-euro fund for the circular economy. Intesa Sanpaolo supports major economic inclusion and poverty reduction projects, including an impact fund of 1.5 billion euro for loans available to social groups who struggle to access credit. Intesa Sanpaolo has a high level of involvement in cultural initiatives, organised by the Bank or in collaboration with other entities in Italy and further afield. These include permanent and temporary exhibitions showcasing the Bank’s impressive artistic heritage at the Gallerie d’Italia, the Group’s museums located in Milan, Naples, Vicenza and soon Turin.

SACE is the Italian financial insurance company specialised in supporting the growth and development of businesses and the national economy through a wide range of tools and solutions to improve competitiveness in Italy and worldwide. For over forty years, SACE has been the partner of reference for Italian companies exporting to and expanding in foreign markets. SACE also cooperates with the banking system, providing financial guarantees to facilitate companies’ access to credit; this role has been reinforced by the extraordinary measures introduced by the so-called Liquidity Decree and by Simplifications Decree. With a portfolio of insured transactions and guaranteed investments for 156 billion euros, SACE serves over 26 thousand companies, especially SMEs, supporting their growth in Italy and in around 200 foreign markets, with a diversified range of insurance and financial products and services.

Last updated 25 August 2021 at 11:43