Italy’s public lighting sector is increasingly becoming a focal point for climate-aligned infrastructure investment. UniCredit has closed a €73 million green project financing for Teike, supporting the expansion and modernisation of municipal lighting and smart city services across the country. The transaction is intended to fund organic growth, targeted acquisitions, and the refinancing of existing debt, while directly advancing national energy efficiency and emissions reduction objectives.

The financing supports Teike, Italy’s third-largest independent public lighting operator, as municipalities accelerate upgrades to aging infrastructure and seek more efficient, digitally enabled urban services. The deal highlights how bank-led green finance structures are increasingly being used to channel private capital into public sector infrastructure aligned with national climate strategies.

Public Lighting as a Climate and Infrastructure Asset

Originally founded in 1950 as Simet Soluzioni Energetiche, Teike is now wholly owned by Pioneer Infrastructure Partners. The company manages approximately 160,000 light points across more than 110 municipalities, with operations spanning Veneto, Lombardy, Piedmont, Tuscany, Apulia, and Abruzzo. Beyond lighting, Teike has been steadily expanding into smart city applications, alongside heating and renewable energy services for local authorities.

Public lighting has emerged as a strategic entry point for municipal energy transition. Large-scale LED retrofits, digital controls, and data-enabled asset management offer immediate reductions in electricity consumption and emissions, while creating platforms for broader smart city services. These upgrades align closely with Italy’s policy focus on reducing power demand and improving efficiency in urban infrastructure.

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Green Loan Structure and Policy Alignment

The €73 million facility is certified under Green Loan Principles and benefits from a green guarantee provided by SACE, reducing risk for lenders and supporting climate-aligned investment. Structurally, the transaction uses a green mini-perm project financing model, split across multiple credit facilities. Mini-perm structures are gaining momentum across European infrastructure markets as a bridge between traditional bank lending and longer-term institutional capital.

Teike’s portfolio of long-dated public sector contracts generates inflation-linked cash flows, offering predictable revenue streams that underpin both lender confidence and Pioneer’s responsible investment strategy. Efficient lighting systems and smart controls are central to reducing municipal energy costs, making energy service companies an execution arm for Italy’s transition agenda.

The project is aligned with Italy’s Integrated National Energy and Climate Plan, which places efficiency in lighting and buildings at the core of its 2030 targets. The transaction demonstrates how green loan standards, public guarantees, and advisory capabilities are being combined by Italian banks to mobilise private capital in support of sovereign climate ambitions.

Scaling Smart City and Energy Services

Teike views the financing as a platform for scale, enabling it to pursue bolt-on acquisitions and new contracts while shifting toward integrated smart city and distributed energy solutions. For municipalities, the model offers turnkey efficiency upgrades, predictable service payments, and reduced upfront capital requirements. For investors, it provides asset-backed exposure with regulated or quasi-regulated characteristics at a time when Europe is seeking stable pathways to deploy climate capital.

Alessandro Giussani, Chief Financial Officer at Teike, described the transaction as an important step for the public lighting sector, noting that it supports continued growth while contributing directly to the energy transition through efficient urban infrastructure. He emphasised the role of innovative green finance and the support of SACE in enabling Teike to accelerate its expansion in public lighting and energy efficiency.

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Banks, Guarantees, and the Energy Transition

UniCredit acted as global coordinator and bookrunner, as well as mandated lead arranger, original lender, hedging bank, agent bank, SACE agent, account bank, and green loan coordinator. The breadth of roles reflects the bank’s strategy to combine advisory expertise with structured green finance solutions as Europe faces a widening climate investment gap.

Francesco Iannella, Regional Manager Northeast at UniCredit, said the transaction underlines the bank’s commitment to supporting the transition to a sustainable economy by providing innovative financing structures to clients investing in energy transformation, in line with European and national objectives.

Why It Matters for Executives and Investors

For corporate leaders and investors, public lighting is increasingly recognised as an anchor asset for digital urban infrastructure. Lighting networks can support sensors, communications equipment, and future services such as electric vehicle charging, creating additional value beyond energy savings. The Teike financing illustrates how municipal efficiency assets are becoming investable through green loan frameworks, guarantees, and infrastructure fund participation.

As Italian municipalities continue to align with national and European climate targets, energy service companies are likely to play a growing role in delivering outcomes on the ground. If replicated, green mini-perm structures in public lighting could extend to other municipal assets, including buildings, heating systems, and renewable integration, further embedding private capital into Europe’s energy transition.

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