ELITE Basket Bond | CDP

Basket Bonds

An instrument for alternative finance and capital market access, to support companies that intend to carry out growth, innovation and internationalisation projects

The innovative Basket Bond mechanism meets the medium-long term financing needs of companies, in order to ensure the implementation of their development and investment plans. This mechanism is based on the issue of a security (ABS), guaranteed by a pool of bonds issued by Italian SMEs and Mid-Caps. CDP plays the role of "Anchor Investor" in these operations.

Who it is aimed at

For SMEs and Small Mid-Caps who want to obtain medium-long term financial resources to support their growth, innovation and internationalisation projects.


How it works

Regional Basket Bonds

Regional Basket Bonds provide a portfolio of minibonds issued by companies based in the region to finance their development plans. The programme aims to support the entrepreneurial and social fabric of the target area. The portfolio benefits from a public guarantee, in the form of cash collateral, issued by the regional finance institution to cover 100% of the first losses incurred on the portfolio.
 

  • Campania Bond Guarantee
    The Campania Bond Guarantee Programme provides for the establishment of a portfolio of minibonds issued by companies in Campania for a maximum amount of €148 million. The companies issue minibonds underwritten by a special purpose vehicle, which in turn issues Asset-Backed Securities subscribed on a 50-50 basis by CDP and MCC, which act as anchor investors in the transaction.
    The portfolio benefits from a public guarantee to cover initial losses up to a maximum value of €37 million. In 2020, five closings were completed and 41 SMEs were financed for €97 million; in 2021, two closings were finalised with 13 companies for a total of €22 million
     
  • Puglia Basket Bond
    The Puglia Basket Bond Programme provides for the establishment of a portfolio of minibonds issued by companies in Puglia for a maximum amount of €160 million. The companies issue minibonds fully subscribed by Unicredit S.p.A. (Arranger and co-investor in the transaction) which then sells 95% of each subscribed minibond to the SPV. Subsequently, the ABS securities issued by the special purpose vehicle are subscribed up to 50% by CDP and MCC, which act as anchor investors in the transaction.
    The portfolio benefits from a public guarantee to cover initial losses up to a maximum value of €40 million. In 2020, two closings were completed for a total of 14 SMEs financed for a total of €52 million; in 2021, a third one was finalised with 3 companies for approximately €12 million.


Market Basket Bonds

Market Basket Bonds are programmes aimed at supporting the development and growth of Italian SMEs and Mid-Caps with medium- to long-term financing through an alternative channel to banking. For this type of product, the use of guarantees at market conditions can be assessed on a case-by-case basis.
 

  • Basket Bond di Filiera
    The programme provides financing to support the growth plans of Italian SMEs and mid-caps active in strategic national supply chains that have a significant impact on the development of Italy's competitiveness. The companies issue minibonds up to a total amount of around €200 million, which are subscribed in equal shares by UniCredit and a securitisation vehicle ("SPV") that in turn issues ABS fully subscribed by CDP.
    With the first closing of the transaction, three Italian companies in the wine sector were financed for a total of €21 million: Feudi di San Gregorio Società Agricola S.p.A. was founded in 1986 and is now a leading company "wines from Campania" segment in southern Italy and internationally; Masi Agricola S.p.A., a company listed on the AIM segment of the Italian Stock Exchange, is considered one of the world's leading producers of fine wines; Pasqua Vigneti e Cantine S.p.A., a company founded in 1925 and recognised worldwide as a producer and ambassador of prestigious Veneto wines.

 

  • ELITE Basket Bond Lombardia
    The programme provides for the financing of companies in Lombardy, which are members of the ELITE programme, up to a maximum total amount of €80 million. Under the transaction, each company will issue a minibond subscribed by a special purpose vehicle ("SPV") which will finance payment of the subscription price by issuing Asset Backed Securities subscribed on a 50-50 basis by CDP and Finlombarda. Between 2019 and 2020, two closings were completed through which three Lombardy companies, included in the ELITE programme, were financed for a total of €32 million.

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