Borsa del Credito, the Italian fintech company participated by P101 sgr, Azimut, and GC Holding, has closed a securitization of loans to SMEs for $241.8 million (€200 million). It was underwritten by Azimut and Brescia-based Banca Valsabbina. Hogan Lovells Studio Legale provided legal assistance as transaction legal counsel. For the role of master servicer and other management roles, Borsa del Credito availed itself of the collaboration of Centotrenta Servicing, while Banca Finint acted as paying agent, issuing agent, and representative of the bearers of the securities (in short, RoN).
In the current securitization, Azimut also plays the fundamental role of underwriter of the junior part through its private debt funds. Banca Valsabbina supported the two companies as arranger, account bank, as well as underwriter of the senior and mezzanine part, for a maximum commitment of 180 million. Cardo AI, a company specialized in supporting the investments of institutional operators through artificial intelligence algorithms, also participated in the operation as technological partner for the supply of reporting tools for the securitization investors. The loans will have a maximum duration of 6 years, including one year of pre-amortization, a variable amount from $60,400 (€50,000) to $1.8 million (€1.5 million and the guarantee of up to 90% of the Central Guarantee Fund for SMEs. Companies requesting the loan will be evaluated in 24 hours on the basis of the preliminary investigation conducted by Borsa del Credito through the use of proprietary artificial intelligence algorithms. The automatic process is then followed by the verification by a credit analyst and then the resolution that takes place online, with the disbursement of the loan within a few working days.
The securitization just completed is part of the “Slancio Italia” project, aimed at supporting the real economy precisely with the securitization model. The project was launched in March 2020, and is financed by credit funds managed by Borsa del Credito and underwritten by Azimut as part of the strategic agreement between the two companies to channel resources quickly and digitally to SMEs, announced in April 2020 and sanctioned the following month by the establishment of the company Azimut Capital Tech, which provides Azimut with all the technological support necessary to provide loans to SMEs through its own platform. We recall that at the end of September 2020 Borsa del Credito concluded another securitization of loans to SMEs, worth 100 million euros. Banca Valsabbina and other institutional investors subscribed the senior tranche (see BeBeez article).
Ivan Pellegrini, CEO of Borsa del Credito, said: “We believe that the road of collaboration is the main way to really innovate the world of finance and make it more efficient and more functional to the needs, including emerging ones, of the real economy. In a delicate period like the one Italy is facing, we felt the need to make our skills available to provide resources to all those healthy SMEs that are experiencing difficult times but want to restart and look to the future. With Banca Valsabbina and Azimut we have created a solid and structural alliance: this is an evolution for us, we are no longer just lenders to the real economy, but technological enablers for traditional finance.”
Marco Bonetti, co-general manager of Banca Valsabbina, explained: “Our institute will continue to look favorably on initiatives like this that on the one hand are an important element in support of SMEs, which particularly in times of crisis like the current one should be supported especially in terms of liquidity, and on the other hand confirm the importance and value of cooperation between the traditional banking system and fintech, a sector in which Borsa del Credito is positioned as one of the most interesting realities.” Gabriele Blei, CEO of the Azimut Group, commented on the securitization just closed by Borsa del Credito as follows: “This initiative is in line with our broader project of synthetic bank, which stands as an alternative to the traditional banking model to support the needs of small and medium-sized Italian companies through the use of fintech platforms with which to finance businesses effectively and quickly. Our goal is to provide Italian SMEs with loans for $1.45 billion (€1.2 billion) over the next 5 years.”
About Borsa del Credito
Borsa del Credito was founded in October 2013 by Antonio Lafiosca, Alessandro Andreozzi, and Ivan Pellegrini as a digital brokerage platform for business credit and in 2015 opened its P2P lending channel. Specializing in micro and SME credit, it boasts over 25 thousand business clients, 4,000 lenders, and more than $96.5 million (€80 million) disbursed.
Borsa del Credito is headed by the holding company Business Innovation Lab spa, which wholly controls two other companies: Mo.Net spa, authorized to provide peer-to-peer lending services; and Art sgr spa, which manages alternative investment funds reserved for professional investors who invest in the loans offered on the platform. In particular, ART sgr manages the Colombo Fund, launched in October 2017 with the support of the same shareholders of Borsa del Credito, and Systema Credit Fund, launched in April 2019 by Confidi Systema! and Prader Bank.
In June 2020, Borsa del Credito launched the Cash Anti-Covid Phase 2 financing. The product is financed by Colombo II, a direct lending fund created by Borsa del Credito and underwritten by Azimut, which last April entered into an agreement to provide loans of up to $120.6 million (€100 million) to SMEs through the fintech platform and with the guarantee of the Mediocredito Centrale Guarantee Fund for 90% of the amount disbursed. Last July, Borsa del Credito signed an agreement with Confesercenti Nazionale to provide SMEs with rapid access to digital credit. Last October, the fintech launched Eco-Green Starter: a loan for companies active in the energy and anti-seismic upgrading of buildings.
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