Elite Basket Bond

Tecnocap among the 10 companies taking part in the Elite Basket Bond, the first system bond issue, organized by Elite – London Stock Exchange Group – in partnership with Banca Finint.

Tecnocap SpA, together with nine other Italian Elite companies, has joined the first Elite Basket Bond, a simultaneous issue of ten-year bonds for a total amount of € 122 million. This is the first financial transaction system, carried out through a “basket” solution by ELITE, the international platform of Borsa Italiana, in collaboration with Banca Finint and aimed to support the growth of a selected and diversified group of qualified Italian companies.

The innovation is the issue of guaranteed bonds by the stocks that the ten ELITE companies issued with same duration and rate but different amounts. The bonds, entirely underwritten by a Special Purpose Vehicle (SPV), benefit from a collateral provided by the same issuing companies (credit enhancement). Tecnocap and the other Issuers will use the proceeds to support investments to increase their businesses.

The main investors of the transaction are the European Investment Bank (EIB) and Cassa Depositi e Prestiti (CDP) which have respectively subscribed 50% and 33% of the total amount of stocks issued by the Special Purpose Vehicle (SPV). A number of other professional investors have also joined the transaction, including Banca IFIS and Zenit SGR.

The transaction was assisted by Grimaldi Studio Legale as legal representative of the issuers and Studio Legale RCC as legal representative of the transaction.

Michelangelo Morlicchio, president of the Tecnocap group, says: “We are proud to take part in a highly innovative financial project, pioneering for solidarity and mutuality between the participants, an alternative financing tool for Italian companies never seen before in Europe. We have worked together with a select group of companies representing the excellence in the Italian SME segment, to create the first Basket Bond System, which for us represents a further step forward in financial strategy oriented towards the best balance and integration between innovative and conventional finance”.

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