The objective is to support the investment plans of companies with alternative finance instruments, helping them to strengthen their competitiveness in Italy and abroad.
In the headquarters of the the Italian Stock Exchange in Milan, a Midnight Palace, a new edition of the program was presented today Basketball Bond Italy which carries a worth 150 million. The main players are the European Investment Bank (EIB), Cassa Depositi e Prestiti (CDP), Mediocredito Centrale (MCC), Banca Finint, Assindustria Venetocentro and Elite.
Nine Italian companies have already benefited from 47,5 million
The occasion was also announced first issue of the program worth 47,5 million which goes in favor of the development plans of four companies in the North e five of the south: Antonio Carraro (leader in the agricultural machinery sector), Novation Tech (company specialized in the production and processing of components in carbon fiber and composite materials), Telebit (system integrator for telecommunications networks), Industrial Cars (company of the Ceccato Group active in the trade of industrial and commercial vehicles), Futur Box (company active in the food packaging sector), Graded (company specialized in integrated energy solutions), Innovaway (system integrator in the IT sector), Netcom Engineering (company specialized in engineering-IT services) and Patrone and Mongiello (company specializing in the cold deformation of steel plates for the automotive industry).
Issued by companies 9 minibonds
Each of these companies, thanks to this operation, has issued minibonds, all with a duration of six years including pre-amortization, raising resources that will be used to support the respective investment and development plans both in Italy and abroad. The subscription of these minibonds took place through a vehicle company – Special Purpose Vehicle (SPV) – which itself issued securities subscribed by CDP and MCC, in equal shares.
Thanks to the support of the EGF, longer duration and lower rates
The new programme, which will end at the end of 2022, benefits from the guarantee with resources from the Pan-European Guarantee Fund (EGF) managed by the European Investment Bank Group (EIB Group), which is an integral part of the 540 billion package of measures approved by the EU to stem the impacts of the pandemic in 2020 and dedicated to countering the economic difficulties and production slowdowns caused by the pandemic. Precisely thanks to the support of the EGF, the new instrument is being offered to businesses with a longer duration compared to the deadlines generally offered by traditional channels and with low interest rates.
CDP present in all 10 transactions for 700 million
"Cassa Depositi e Prestiti it took part in all the main Basket Bond operations launched in Italy. From 2017 to date, 10 transactions have been completed, involving more than 150 small and medium-sized enterprises, for an amount that exceeds 700 million euros” said the Deputy General Manager and Business Director of CDP, Massimo DiCarloat the presentation.
The new program represents "a further step in the path of accompanying Italian companies to the capital market through alternative finance instruments" added Di Carlo, underlining that this innovative mechanism of basket bonds "satisfies the medium-long term financing needs of businesses, through an instrument complementary to the banking channel, intended to support their development and investment plans".
CDP's goal is to "make operations on basket bonds ever wider and more scalable", operations in which Cassa Depositi e Prestiti acts in the role of "Anchor Investor” by investing in securities representing a basket of minibonds issued by SMEs and midcaps, managing to “support companies which, due to their size and intervention tickets, would not be reachable directly with single name transactions”.
The initiative is promoted by Finint Bank, in the role of arranger in cooperation with Assindustria Venetocentro and Elite. CDP and MCC invest in minibonds issued by companies that intend to finance their growth using an alternative channel to the traditional credit one.
