These SMEs primarily focus on sustainability, innovation, and digitalisation. The EIF transactions are backed by the InvestEU programme. Thanks to the InvestEU Innovation and Digitalisation guarantee of EUR 25 million, illimity Bank will be able to further support innovation and digitalisation-driven enterprises. This support will improve access to finance for research and innovation-intensive SMEs and small mid-caps, as well as support the uptake of digital technologies and the digital transformation of enterprises.
On the other hand, the InvestEU Sustainability guarantee of EUR 25 million will enable illimity Bank to boost the green and sustainable transition of the economy, encouraging environmentally friendly, green, and inclusive investments of the target final recipients.
This transaction will empower small and medium businesses to secure vital financing, enabling them to expand their operations, invest in innovation, and create new job opportunities. With a commitment to supporting small and medium businesses, illimity Bank continues its collaboration with EIF, which started in December 2021, to leverage these funds effectively and drive economic growth in Italy.
illimity was launched through one of Europe’s first SPACs, raising EUR 600 million. Retaining the solidity and gravitas of a traditional banking offering, it is fully digital and in the cloud, has entirely modular IT infrastructures, and is API-based, allowing cost and time savings of 80-90% compared to more traditional institutions. It also possesses the know-how to integrate the world’s best apps into its offerings as most of its staff have backgrounds outside of banking, in sectors which have already experienced digitalisation.
The bank serves SMEs in several different ways. First, with growth credit: loans to companies that have ambitious projects to grow, in performing situations. Second, with turnaround or restructuring loans for companies that have encountered some problems, helping them relaunch and return to generate sustainable profits. And third, through distressed credit.
The Distressed Credit Division, with its servicing company neprix that also acts on behalf of third parties, is the largest contributor to the bank's results thanks to its specialisation in corporate secured loans, end-to-end business model and growing role in the UTP sector. This has been further strengthened by the acquisition of AREC, a company specialised in the management of Unlikely to Pay (UTP) loans with a focus on the corporate real estate segment.
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