Garanzia Campania Bond goes two rounds and raises a total of 200 million for 90 companies in the region

Garanzia Campania Bond goes two rounds and raises a total of 200 million for 90 companies in the region

The figure was reached thanks to the finalisation of the last two issues of the second 29 million edition in favour of 13 local SMEs

All major sectors are involved, starting with manufacturing with 20 companies issuing 42 million, agribusiness with 13 companies for 27.5 million and digital with 10 companies for 24 million

Naples and Salerno the most active provinces in the region


90 small and medium-sized enterprises in Campania have been able to pursue their growth and expansion projects in Italian and foreign markets, strengthening their competitiveness thanks to the 200 million euros raised through the two editions of the Garanzia Campania Bond programme.

This instrument of innovative finance promoted by the Campania Region through its in-house company Sviluppo Campania achieved this overall result thanks to the last two issues totalling 29 million euros destined for 13 small and medium-sized enterprises.

Mediocredito Centrale (MCC) and Banca Finint acted as arrangers,1 while Cassa Depositi e Prestiti (CDP) and MCC acted as investors, underwriting the issues on an equal basis.

With the resources made available by the last two operations of the second edition, companies in the area will finance the purchase of new machinery, plant modernisation, new investments in research and development, and the increased need for working capital to implement growth programmes aimed at supporting the expansion of production. Specifically, the 13 companies are: Scatolificio Salernitano, Railway Windows, Promoitalia Group, I.N.C.O., I.GI., Ecosfera Servizi, E+S Air, A. Abete, Assopaf Agrindustria Alimentare Soc. Coop., Coelmo, CST – Centro Servizi Trafilerie, D.P.F. and La Tecnica nel Vetro.

With regard to the overall operations of the two editions of the Garanzia Campania Bond, the sectors most involved were manufacturing with 20 issuing SMEs for 42 million euros, agribusiness with 13 issuers for 27.5 million euros and digital with 10 issuers for 24 million euros. Other sectors involved include healthcare, energy, logistics/transportation, clothing, construction/infrastructure, trade and automotive. As far as territorial distribution is concerned, the most active provinces were Naples with 47 SME issuers for 107.8 million euros and Salerno with 20 issuers and 46.4 million euros, followed by Caserta, Avellino and Benevento.

The Programme continues to be a positive experience for the Campania Region, thanks above all to the trust of the region's entrepreneurial fabric in this instrument of innovative finance. In fact, the region has the largest number of Basket Bond issues in Italy.

The Grimaldi Law Firm and ELITE - Euronext Group were also involved in the project for the first edition, respectively with legal support and in the promotion of the initiative in the region, which also took place with the active support of the Campania ELITE Desks of Confindustria.

Focus on the instrument
In detail, each financing programme transaction consists of two simultaneous steps: on one hand SMEs issue minibonds of between one and five million euros subscribed by the special purpose vehicles (SPVs) for each issue. On the other, the SPV finances the purchase of the minibonds through the issuance of Asset-Backed Securities (ABS) secured by a portfolio guarantee provided by Sviluppo Campania, which conceived the instrument on behalf of the regional government. CDP and MCC act as investors, each underwriting 50% of the total amount of the ABS issues.

_____________________

1 Role held within the Temporary Grouping of Companies (RTI).