Transform the immediate liquidity inventory value, without interrupting the production and commercial cycle. This is the objective of the first Italian warehouse securitization operation, the so-called destocking, carried out by Cassa Depositi e Prestiti and Cherry Bank in favour of Brazzale, a dairy company, through a financing total from 10 million euros.
The operation is made possible by the recent regulatory evolution which has expanded the possibilities of using the tools of securitization, allowing to also include the unregistered movable property, such as raw materials, semi-finished products, and finished goods. This innovation allows companies to leverage assets that normally remain tied up in working capital, transforming inventory into a financial lever to support liquidity, growth, and competitiveness.
Inventory Securitization: How the CDP-Cherry Bank Model Works
The model is based on the possibility for a company to obtain financial resources by anticipating the economic value of the goods present in its inventories. In the case of Brazzale, the warehouse involved in the operation includes fresh and semi-mature products, goods that have not yet completed the maturation process and which will be sold only at the end of the production cycle.
Ownership of the products is gradually transferred to Italian Warehouse Spv, special purpose vehicle established pursuant to Law no. 130 of 1999. Upon transfer, the SPV immediately recognises the manufacturer's purchase price, allowing the company to obtain liquidity without waiting for the end of the seasoning process and subsequent marketing.
The structure is also revolving: proceeds from product sales are used both to repay the loan and to purchase new batches of goods. This mechanism allows for a continuous cycle of inventory valorization and makes the model replicable in other production chains.
The new regulation opens the way to warehouse securitization
The implementation of the operation was made possible by the recent regulatory evolution of the Law n. 130 of 1999, amended within the scope of the PMI Decree and entry into force on 7 April 2026.
The reform has broadened the scope of securitisations by allowing it to also include unregistered movable property, a category that includes inventory. This initiative has opened the way for companies to capitalize on assets that, despite having significant economic value, are normally tied up in working capital.
The aim of the legislation is to foster greater financial capacity for businesses by supporting strategic production chains and offering new tools to improve liquidity and competitiveness without impacting business continuity.
Magazzino Italia SPV and the €10 million financing
To purchase Brazzale's products, Magazzino Italia Spv received a total loan of 10 million euros, granted in equal parts by Cdp and Cherry Bank, each for 5 million.
The SPV uses these resources to pay the value of the goods to the manufacturer. The financing will be repaid subsequently through the cash flows generated from product sales once the maturing and marketing process is complete.
From a financial point of view, the model allows the company to finance its working capital by valorising an activity already present in the company's assets, without resorting exclusively to the traditional debt instrumentsThe structure also allows for diversify funding sources and improve corporate liquidity management.
Immediate liquidity without stopping production
One of the most innovative aspects of the operation concerns the production continuityAlthough ownership of the goods is transferred to the SPV, the products remain physically at the manufacturer's premises.
Through specific storage, seasoning and refinement agreements, Brazzale continues to carry out all the necessary activities to ensure that the products reach the quality standards required for sale. industrial process does not undergo Than we changes: no logistical transfers or organizational changes are necessary, while the value of the warehouse is immediately transformed into liquidity.
Once the maturation process is complete, the products are sold to large retailers according to the agreed-upon commercial agreements. The proceeds from sales represent the main source of repayment of the financing granted to the SPV, completing the financial cycle of the operation.
Guarantees and controls to protect financiers and investors
The structure of the operation includes a complex monitoring and guarantee system to reduce risks and strengthen the credit profile of the initiative.
Among the tools provided for are the asset segregation of the SPV which guarantees the separation of the assets involved in the transaction from the assets of the other participating entities. In addition to this, there is the non-possessory pledge on the assets owned by the special purpose vehicle, which allows the products to remain with the manufacturer while constituting a guarantee in favor of the financiers, an overcollateralization mechanism and specific insurance coverage stipulated in the interest of the SPV.
On the operational front, Pirola Corporate Finance acts as Asset Manager, managing and monitoring the transaction, while Cherry Bank also acts as Facility Agent, coordinating the operational aspects of the financing. An independent appraiser also periodically verifies the actual existence, quantity, and value of the products in stock.
CDP and Cherry Bank: destocking aims to become a model for Italian SMEs
“The operation announced today confirms once again Cassa Depositi e Prestiti's capacity for financial innovation and leadership in the alternative finance segment,” declared Andrew Nuzzi, Director of Business at CDP. "For years, we have been promoting innovative structures on the market by providing businesses, particularly SMEs, with financial solutions that meet their needs and expand their toolbox. With the first destocking operation launched in Italy, the securitization tool is being used in one of the main strategic supply chains of the national economy with the aim of providing immediate liquidity to companies and valorizing the assets in stock. At the institutional level, the initiative is part of the agreement signed with the Ministry of Agriculture, Food Sovereignty and Forestry, which aims to support access to credit for agri-food companies. We hope that, starting today, more and more companies in this supply chain and others will follow Brazzale's example and move towards a cutting-edge financial structure."
For John Bossi, CEO of Cherry Bank, destocking represents "a financial paradigm shift." "The innovative scope," he added, "could be comparable to the introduction of factoring for trade receivables in Italy 35 years ago. It's a watershed moment that could transform the way certain companies do business, permanently modifying their production function, increasing financial efficiency, and generating immediate value for the company, potentially reducing debt while maintaining EBITDA. Our task is to make destocking simple, repeatable, applicable, and affordable for as many companies as possible."
The goal now is extend the model to other production chains, particularly in sectors characterized by high inventory levels and longer turnover times. Destocking for SMEs is thus an innovative tool for improving corporate liquidity, transforming inventory from tied-up capital into a strategic asset for the growth and competitiveness of Italian companies.
