TITOLO PROVVISORIO DELLA SLIDE DI PORTAFUTURO SME INITIATIVE 20 NOVEMBRE 2015 Bucharest - July 11, 2017

1. SME INITIATIVE REGULATORY FRAMEWORK SME GUARANTEE FACILITY (COSME) Pursuant to article 39 of EU Reg. No. 1303/2013 Member States may use the ERDF and the EAFRD to provide a financial contribution to financial instruments indirectly managed by the European Commission with implementation tasks conferred on the EIB (or EIF). SME GUARANTEE FACILITY (COSME) HORIZON 2020 (Innovation) SF ESTABLISHED BY EC SME INITIATIVE

2. WHAT IS THE SME INITIATIVE? The SME Initiative is a joint financial instrument of the EC and the EIB Group (the European Investment Bank and European Investment Fund) which aims to provide a financial contribution to such financial instruments managed indirectly by the European Commission for stimulating SME financing by providing partial risk cover for SME loan portfolios of originating financial institutions. PROVIDES CAPITAL RELIEF TO BANKS, ATTRACTING PRIVATE SECTOR CAPITAL MARKET INVESTMENTS IN SMES, LEVERAGING PUBLIC FUNDS, AND REDUCING MARKET FRAGMENTATIONS Member States, may voluntarily allocate up to 7% of his national ESIF allocations, included in a special dedicated National Operational Programme (NOP), managed by the EIF.

3. ACCESS Member States can express to the European Commission their interest to join the SME Initiative. DEDICATED OP FUNDING AGREEMENT AD HOC APPROVED BY EC ANNOUNCEMENT IT ESTABLISHES TERMS AND CONDITIONS, INVESTMENT STRATEGY, BUSINESS PLAN, EXPECTED RESULTS, REVIEW PROCEDURE, REQUESTS FOR PAYMENT AND MANAGEMENT COSTS. MAX 7% ERFD/EAFRD FUNDS EUROPEAN INVESTMENT FUND BANKS SELECTION

NEW LOANS TO SMEs ON FAVOURABLE TERMS 4. HOW THE SME INITIATIVE WORKS The SME Initiative provides partial coverage of the credit risk of financial intermediaries for the SME loan portfolios. BANK LOANS PORTFOLIO SME INITIATIVE CREDIT RISK REGULATORY CAPITAL REGULATORY CAPITAL RISK SHARING NEW LOANS TO SMEs ON FAVOURABLE TERMS

5. STRENGTHS SME initiative does not require co-financing with national funds saving National Budget funds for other uses, unlike the other structural fund products, where Member States must co-finance a percentage of the eligible expenditures SME initiative builds on an existing framework that allows to act fast and have significant impact: no need additional ex-ante assessment and is base on a standardized funding agreement Facilitating the re-opening of the SME securitisation market, allows banks to diversify their sources of funding Provides liquidity and capital relief to the banks (with strict conditionality to engage in new SME lending) and covers part of loan losses

OPTION 2 – SECURITIZATION OF EXISTING LOAN PORTAFOLIOS 7. MAIN FEATURES 1/3 MANAGING AUTHORITY MiSE – DGIAI GEOGRAPHICAL AREA BUDGET FUNDS (d)NOP LESS-DEVELOPED REGIONS SME INITIATIVE ITALY 102,5 mln NOP I&C Campania Puglia Calabria Basilicata Sicilia OTHER FUNDS Max 4 mln COSME 100 mln FSC TRANSITION REGIONS FINANCIAL INSTRUMENT Sardegna Abruzzo Molise OPTION 2 – SECURITIZATION OF EXISTING LOAN PORTAFOLIOS

7. MAIN FEATURES 2/3 Italy is the first MS to implement the securitisation of existing portfolios (Option 2) The resources made available, through the Ministry for Economic Development (Ministero per lo Sviluppo Economico – Direzione per gli Incentivi alle Imprese) as the Managing Authority, amount to EUR 202.5 m, of which: EUR 102.5 m via the Dedicated Operational Programme (CCI 2015IT16RFSM001); and EUR 100 m of additional national funds. Plus additional : about EUR 4.25 m of resources from the COSME programme; and up to EUR 1.5 bn of resources made available by EIB Group The above resources will be used to deploy the securitisation instrument in Italy

7. MAIN FEATURES 3/3 Securitised Portfolio : existing debt finance (loans, leasing, guarantees) to SMEs and other enterprises with less than 500 employees SMEs portion of the Existing Portfolio to equal at least 80% of the same at least 50%+1 of the Existing Portfolio located in the Southern regions not supported by other EU/ESIF instruments (to avoid double financing) Additional Portfolio : new debt finance (loans, leasing, guarantees) to SMEs located in the Southern regions working capital may be financed in line with ESIF regulation new loans may take the form of credit line facilities COSME (or H2020) eligibility criteria must be respected for a proportion of the portfolio Overall target volumes in terms of new debt finance to SMEs in the Southern regions : 6x on the MS funds used at securitisation level to cover the junior e lower mezzanine risk, plus 20x on the COSME funds used at securitisation level to cover the middle mezzanine risk “Hard cash” penalty: if Additional Portfolio < amount of MS contribution used at securitisation level Other penalties: linked to transfer of benefit and COSME contribution

8. HOW SME INITIATIVE ITALY WORKS Securitization of existing loans portfolio Commitment to provide, within 3 years, a new loan portfolio BANK/ FINANCIAL INTERMEDIARY Existing loans SME and MID-CAP portfolio New loans to ‘’Mezzogiorno’’ SMEs portfolio Amount at least equal to 6x the amount of Member State contribution POSSIBLE EIB INTERVENTION Tranche senior IEF Upper mezzanine Middle mezzanine COSME Lower mezzanine SME INITIATIVE ITALY Tranche junior Originator retention

9. EXPECTED RESULTS With a total of funding of EUR 206.5 M, the SME Initiative NOP and the commitment of selected intermediaries to disburse new loans for a multiple of at least 6 compared to the dedicated NOP resources posed to guarantee first losses of existing securitized loan portfolios, the expected volume of new loans to the South SMEs amounted to approximately EUR 1.2 billion in 3 years. The securitized portfolio shall be partially composed by loans guaranteed by credit consortia. This will allow the release of the regulatory capital managed by the credit consortia and not only by banks, thus leading to an increased number of new guarantees issued by the credit consortia.

10. Main steps First application received by EIF in June 2017 30 November 2015 Approval by the EC of the Dedicated OP 01 August 2016 Signature of the Funding Agreement between EIF and the MA 17 October 2016 Signature of the Intercreditor Agreement between MA, Commission (DG GROW), EIF, EIB 21 October 2016 Publication of the Call for Expression of Interest 30 September 2017 Deadline for applicaiton under the Call 31 December 2020 End of the Disbursement Period for Additional Portfolios First application received by EIF in June 2017

Information and contacts: THANK YOU for your attention Information and contacts: www.mise.gov.it