Credimi and Banca Generali partner to help SMEs in Italy

The last securitization tranche, launched by Credimi in collaboration with Banca Generali, will have a size of $45 million (€40 million). The funds will be made available to SMEs in Piedmont and Valle D’Aosta. Anchor investors are Fondazione CRT, through Fondazione Sviluppo e Crescita, and Finpiemonte, which will subscribe the junior tranche equal to 10% of the issue.

The first losses will therefore be covered by the two institutions, while the rest of the portfolio (90%) is covered by the SME Guarantee Fund. The intervention of Fondazione CRT and Finpiemonte, moreover, allows the containment of the interest applied to the loans and generates a multiplier effect in the disbursement of the loans in a ratio of 1 to 10 (for each euro allocated by the two Piedmontese institutions, an additional $10 (€9) are collected from qualified savers who can count on the full guarantee of the capital).

Read more details about the collaboration between Credimi and Banca Generali to offer loans amounting to $45 million to SMEs and be the first to find out the most important economic news in the world with the Born2Invest mobile app.

What companies will be able to access these funds

The companies that will be able to access these funds must have less than 500 employees, a turnover above $112,800 (€100,000), must be corporations with at least one deposited balance sheet or partnerships with at least one tax declaration. Applications can reach a maximum limit of 25% of turnover. The loans granted will have an amount between $33,800 (€30,000) and $846,000 (€750,000) depending on the turnover of the company to be financed and aim to reach over 400 SMEs in the territory.

On the investment side, on the other hand, the securitization has a duration of 6 years and will offer a return to Banca Generali’s professional clients equal to 3-month Euribor (with a floor at -0.10) plus 3%.

This is the same structure that in early April saw the Generali Group as an anchor investor, through its Extraordinary International Fund launched to deal with the coronavirus emergency, with an investment of $11.2 million (€10 million) in the junior tranche of the first securitization, with the aim of rapidly mobilizing private savings in a 1-to-10 ratio to reach a total amount of $112.8 million (€100 million).

Credimi’s founder and CEO, Ignazio Rocco di Torrepdula, said: “Thanks to the Italianonsiferma operation, we have made $112.8 million (€100 million) available to Italian small and medium enterprises in just three months. Being able to continue this project alongside not only the Generali Group, but also institutions such as Finpiemonte and Fondazione CRT, shows how financial and institutional players can work together to improve this country. This agreement will be able to free up new liquidity in the most effective and fastest possible way for those smaller companies most affected by the crisis, allowing them to have the resources to recover or completely rethink their business model in the right time.”

Banca Generali’s Chief Executive Officer and General Manager, Gian Maria Mossa, commented: “After the health emergency, the effects of the crisis risk bringing the fabric of businesses to their knees, which is why we have launched an ambitious project to bring private savings closer to the real economy. This new issue edited with Credimi sees at our side the precious contribution of Finpiemonte and Fondazione CRT who have chosen to support the territory through the subscription of the junior tranche of the operation which, in addition to the public guarantees, completes the protection for private investors who want to look for new forms of decorrelation from market risks, concretely helping the recovery of the system.”

The BG4REAL project

Banca Generali has been investing for years in the securitization notes of invoices proposed on the Credimi platform and more recently, even before the Italianonsiferma securitization, it structured a specific investment product for its professional clients based on the loans offered on the platform. More generally, Banca Generali started in 2015 to bring the private savings of companies with mezzanine debt and financing closer to real estate transactions. It then launched sicavs to invest in SMEs. In 2017, it embraced the world of securitizations and to date, the bank has closed securitizations for over one billion euros.

All this was then incorporated into the BG4REAL project, aimed at giving new fuel to the Italian entrepreneurial system and new investment opportunities to Banca Generali’s clients, in light of the bond yields (and not only) compressed. Banca Generali is paying close attention to financial innovation. At the beginning of February, the bank inaugurated its new center dedicated to training and innovation in private banking, called the BG Training & Innovation Hub, the new point of reference for Banca del Leone’s private bankers to discuss the evolution of advisory services and develop new investment solutions together with its asset management partners. 

Conceived as a laboratory to explore new proposals in the private banking sphere, the Hub will also be the cradle where to conceive new tools related to the contribution of investments towards the real economy in the BG4Real project. Among these are the new alternative investment fund to invest in SMEs, 8A+ Real Innovation, 70% debt and 30% equity, launched recently and an Eltif, 80% debt and 20% equity, coming soon.

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(Featured image by ddzphoto via Pixabay)

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First published in BeBeez, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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