(Bloomberg) -- Italy’s Ferrovie dello Stato Italiane SpA is set to receive a €2 billion ($2.1 billion) loan from Intesa Sanpaolo SpA, which would help the state-controlled rail operator fund maintenance and beef up its infrastructure.
The four-year credit is backed by Italy’s state insurance and financial group Sace, according to people familiar with the matter, who asked not to be named discussing confidential deliberations. The financing completes the firm’s medium-to-long term funding for this year, they said.
Ferrovie, owned by Italy’s Finance Ministry, is planning investments worth around €100 billion ($105 billion) under its 2025-2029 plan announced earlier this month. The company is also looking for investors for its high-speed network, Chief Executive Officer Stefano Donnarumma has said.
Representatives for Ferrovie, Intesa and Sace each declined to comment.
The rail company plans to adopt a regulatory asset-based financing model for securing investments through self-financing, with possible openings to third-party capital.
--With assistance from Sonia Sirletti.
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