Convertible Subordinated Bond Loan |CDP

Convertible Subordinated Bond Loan

 

Who it is aimed at

Enterprises affected by the Covid-19 epidemiological emergency that meet, in addition to the general access criteria, the following specific requirements for a Temporary Framework operation:

  • the ratio of debt to equity or debt to EBITDA is greater than the normalised level specific to the sector in which the company operates*
  • a company operating in one of the strategic sectors indicated in the decree, or with a turnover of more than €300 million or falling within the 30% of companies with the highest number of employees in the province where the registered office, or the headquarters of one or more production plants, is located
  • rating of not less than B+, or equivalent, issued by an external credit rating agency (ECAI) not earlier than 6 months before the date of application for assistance
  • not operating in the banking, financial or insurance sectors and are not undertakings referred to in Art. 162-bis of the Consolidated Income Tax Law
  • if unlisted, any public shareholding of less than 10%
  • not in difficulty as at 31/12/2019 (pursuant to Art. 2(18) of Commission Regulation No. 651/2014 of 17 June 2014)
     

* For more information on the sectors, see the table attached to the Ministerial Decree
 

How it works

With the Convertible Subordinated Bond instrument, with a duration of 5 years for listed companies and 6 years for unlisted companies, we can support the financing needs of your company with its medium-long term development plans.

Financial terms and conditions:

Listed companies: EURIBOR 1Y +

  • 2.50% (1st year)
  • 3.00% (2nd-3rd year)
  • 4.20% (4th-5th year)

Unlisted companies: EURIBOR 1Y +

  • 2.50% (1st year)
  • 3.15% (2nd-3rd year)
  • 4.20% (4th-5th year)
  • 5.00% (6th year)

The main features of the instrument are:

  • operational streamlining of concession procedures
  • flexible repayment plan, thanks to the absence of early repayment penalties
  • possibility to convert into capital on the basis of specific events
  • limited costs in managing the instrument

The amount of assistance must be at least €1 million and must not exceed 20% of outstanding shares; for unlisted companies, the maximum amount can be increased by a further 4.99% if there is a co-investor.

To benefit from the assistance, unlisted companies will have to provide a fair market value determined by one of CDP's valuation partners. You can apply through one of Qualified Independent Experts.

In any event, the maximum amount must not exceed that required to restore the company's capital structure to the situation prior to the Covid-19 pandemic, i.e. the situation on 31 December 2019.

The financial resources obtained must be used by your company to support working capital needs and/or investments, in line with a plan that takes into account EU and national objectives in relation to the green and digital transformation.

It will be possible to apply for this instrument until 31 December 2021, unless extended.
 

How to apply

You can apply through one of our Qualified Intermediaries.
 

The 4 steps to apply for the Patrimonio Rilancio

  • Choose the intermediary: the company applies to one of CDP's intermediary partners
  • Verification of requirements: the intermediary verifies the requirements are met and sends the application to CDP
  • Assessment: CDP assesses the application and decides if to provide assistance
  • Disbursement: in the event of a positive decision, CDP finalises the loan to the company
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