With the inaugural € 50 million issue, today started the Export Basket Bond Programme, the € 500 million programme dedicated to companies belonging to the ELITE programme which was launched by the CDP Group and Banca Finint to support the internationalization and growth of Italian companies abroad.
The funds raised today, through the issue of fixed rate bonds with a duration of 8.5 years, will finance the investment plans of ten Italian companies on the international markets.
Cassa Depositi e Prestiti (CDP) and Banca del Mezzogiorno - Mediocredito Centrale - who are the main investors - respectively underwrote 50% and 40% of the total amount of the programme’s first issue, which financed the special (vehicle) company EBB Export, for an amount equal to the sum of the bonds issued by the ten companies.
In the transaction, Banca Finint acted as Arranger (through its subsidiary FISG), CDP acted as Anchor Investor and SACE - that together with SIMEST represents the export and internationalization hub - acted as the Guarantor.
The companies to which the programme is addressed are all members of the ELITE programme, which gathers many leading Italian internationalization-oriented companies.
In its structure, today's transaction reproduces the fundamental and innovative elements of the Basket Bond designed and created by Banca Finint in December 2017: the first systemic financial transaction aimed at SMEs and mid-caps with CDP as Anchor Investor.
The amounts issued and the coupons paid on the bonds are differentiated for each issuer, depending on its financial requirements and relative creditworthiness.
The transaction has so far involved the following 10 companies: Badinotti Group, Bucci Automations, Fratelli Polli, GFM, Giglio Group, Industria Chimica Adriatica, Magis, Plastica Alfa, Pusterla 1880 and Svas Biosana.
Banca Finint received legal assistance from the law office RCCD, while SACE and CDP were assisted by the law office Legance.
"It is always a matter of pride - says Enrico Marchi, Chairman of Banca Finint - to be able to announce the launch of important initiatives that put finance at the service of the real economy with highly innovative transactions. We are pleased that the first Basket Bond transaction, organized last December 2017 and the first systemic issue aimed at supporting Italian SMEs, has not remained an isolated case and has instead laid the foundations for a wide-ranging programme focused on Italian companies with important internationalization plans, which will hence be able to raise new capital to keep up with the times and aim for new goals. As Banca Finint we will continue in this direction, by promoting actions to support investments, providing companies with the means to expand their credit access channels thus supporting the development of the country’s real economy”.
"The Export Basket Bond Programme allows us to implement a new tool to support the internationalization and growth of companies abroad through the development of innovative asset classes," said Fabrizio Palermo, CEO of CDP. "The launch of this programme is a further confirmation of CDP's ability to financially innovate and is part of the broader strategy set out in the Business Plan to support companies, infrastructure and the territory, confirming our commitment towards small and medium-size firms with prospects of development and international growth ," concluded Mr. Palermo.
“We are extremely pleased to have conceived, developed and implemented, together with top-level partners such as Finint and our parent company CDP, an innovative mid-to-long-term finance approach for excelling companies that compete and grow on international markets - said Alessandro Decio, CEO of SACE -. It is an integral part of our strategy to provide Italian SMEs with our expertise and our ability to take risks in order to support and accelerate their growth abroad, providing access to financial solutions that in the past were only available to larger companies. This is also the result of the joint effort of innovative entities that are working to provide tools that simply were not there before”.
Bernardo Mattarella, CEO of Mediocredito Centrale, states: "By taking part in this transaction as the main investor together with CDP, Mediocredito Centrale is continuing to implement one of its main strategic lines: building a network of partnerships to help create a standardized system with the resources and skills of the country's main financial intermediaries. By exploiting the synergies that hence arise, Mediocredito Centrale is continuing to promote new opportunities of access to credit and capital markets for small and medium size Italian companies to develop”.