Gruppo Cassa Depositi e Prestiti (CDP) has allocated new funding to support Italian exports to Iran, following a trade mission to the country led by Prime Minister Matteo Renzi.

The group, which comprises export credit agency (ECA) Sace, is supporting Italian exports to the country through a variety of products. Credit lines worth €4bn are earmarked to support projects in sectors such as infrastructures, oil and gas and transportation commissioned to large Italian corporates and involving a big number of SME suppliers. Sace is prepared to support these credit lines with guarantees also worth €4bn.

Sace is also offering €500mn for trade finance and credit lines worth €300mn, in an agreement with Banca Popolare di Sondrio, to Italian SMEs exporting to Iran.

Strengthening export support to Iran is crucial to restart trade between the two countries. The goal is to support both infrastructure projects involving large Italian corporates, and the exporting activities of SMEs.

According to Sace, the first financial operations involving Italian and Iranian SMEs are close to being finalised, thanks to a deal signed with the three biggest Iranian private banks, Bank Pasargad, Bank Parsian and Saman Bank.