Basket Bond: innovative finance to help businesses grow

Emission programmes launched in Puglia, Campania and Lombardy

Basket Bonds are innovative finance instruments to support Italian SMEs and Mid-Caps in realising their growth projects through direct access to the capital market.

As an institutional investor, Cassa Depositi e Prestiti provided financial support for this innovative mechanism based on issuing a security guaranteed by a pool of bonds issued by Italian SMEs and Mid Caps. The instrument, which has been launched in various Italian regions, is an important economic breakthrough for many companies at a time of difficulty in accessing bank credit, resulting in an ethical and profitable collaboration between the public and private sectors.

Through issuing Minibonds backed by regional guarantees, several companies in Campania, Puglia and Lombardy have been able to finance their development, growth and internationalisation programmes and many more are preparing to do so in the coming months.

In Campania, Cassa Depositi e Prestiti and Mediocredito Centrale acted as anchor investors in the transaction, each underwriting 50% of the total amount of issues under the Campania Bond Guarantee programme, the instrument promoted by the Region through the in-house company Sviluppo Campania.

In Puglia, CDP also acted as an institutional investor alongside Mediocredito Centrale, providing financial support for the project promoted by the Puglia region and implemented by the regional in-house company Puglia Sviluppo in collaboration with UniCredit (in the role as arranger).

ELITE Basket Bond Lombardia, on the other hand, is the programme that Cassa Depositi e Prestiti and Finlombarda, the Lombardy Region's finance company, together with Banca Finint, launched to finance the development plans in Italy and abroad of Lombardy companies that are part of the ELITE ecosystem, which aims to accelerate the growth of companies, with the clear mission of supporting internationalisation and innovation processes to promote the country's companies of excellence.