Businesses, memorandum of understanding signed for the Sicily Basket Bond programme

Businesses, memorandum of understanding signed for the Sicily Basket Bond programme

Cassa Depositi e Prestiti and Mediocredito Centrale will be the institutional investors in the operation guaranteed by the Region.

 

Making access to credit easier for Sicilian SMEs through a bond issuance programme. This is the main goal of the memorandum of understanding signed in Palermo at the offices of the regional councillor for Production Activities by the Region of Sicily, Cassa Depositi e Prestiti, Mediocredito Centrale and Irfis - Fin Sicilia, the regional institute providing financing to industries in Sicily.

The purpose of adopting the Basket Bond programme, which is the first of its kind in Sicily, is to support the investments of SMEs in the region; the programme has financial resources totalling 19 million euro, which come from the European Regional Development Fund (Fesr 21/27). Under the programme, the Region will grant 15 million euro of guarantees, plus another 4 million will come from public grants to reduce businesses’ emission costs. The use of these resources will be a significant boost that can result in a total amount of minibonds equal to 60 million euro, generating a positive impact on the local area.

The “Sicily Basket Bond” programme is promoted by the Region of Sicily, in association with the regional financial institution Irfis, and Cassa Depositi e Prestiti and Mediocredito Centrale as institutional investors. The bonds guaranteed by the Region may be used by businesses to support investment programmes or for working capital requirements.

The Regional Councillor for Production Activities, Edy Tamajo, the Chair of Irfis Fin Sicilia, Iolanda Riolo, the Head of Businesses and Financial Institutions of Cassa Depositi e Prestiti, Andrea Nuzzi, and the Chief Executive Officer of Mediocredito Centrale, Francesco Minotti were present at the signing.

“The signing of this memorandum - commented the President of the Region of Sicily, Renato Schifani - confirms the considerable focus our government is giving to support SMEs. Thanks to this first Basket Bond programme, an innovative initiative for our region, we can offer companies access to alternative, easier credit, making strategic resources available to promote investments and growth that will have positive impacts on the entire economy in Sicily”.
“Our commitment - added Edy Tamajo, regional councillor – to consolidating the sustainable growth and competitiveness of Sicilian businesses continues. With this measure, which has already been successfully trialled in other Italian regions, we can give Sicilian businesses an additional instrument for credit support, at a historic time when they need greater liquidity to plan investments, grow and consolidate their position on markets”.
“The initiative announced today - Andrea Nuzzi, Head of Businesses and Financial Institutions of Cassa Depositi e Prestiti noted - is an important step both for CDP and for the business community in Sicily. Cassa Depositi e Prestiti has confirmed its support for the region, with a view to meeting the main development needs of businesses. In this framework, our role is to provide new solutions and instruments for alternative financing, such as Basket Bonds, to bring more and more companies closer to the capital market, and act as a go-between for the production system and public resources, thanks to a close partnership with the Region of Sicily, Irfis and Mediocredito Centrale”.
“Irfis is once again working alongside the regional government to promote Sicily”, said Iolanda Riolo, Chair of the financial intermediary. “We are giving our businesses an alternative to traditional bank loans which has been proven to work in other regions, and we think it can be fully exploited by our production system”.
“The memorandum we’re signing today confirms our special focus on Southern Italy and Sicily” Francesco Minotti, Chief Executive Officer of Mediocredito Centrale concluded. “The Basket Bond programme is entirely new for the Region of Sicily, which has numerous SMEs. Thanks to this instrument, SMEs can diversify their funding away from traditional bank loans and adopt an evolutive approach to the capital market”.