CDP and UniCredit launch the first "supply chain basket bond"
Friday 26 March 2021
€200 million for growing companies in strategic sectors of the Italian economy
First €21 million issuance in favour of three companies operating in the wine sector
The first 'supply chain basket bond', the €200-million programme that Cassa Depositi e Prestiti and UniCredit have launched to finance the development plans, both in Italy and abroad, of companies belonging to supply chains that are of strategic importance to the Italian economy, is about to get under way. The first issuance, dedicated entirely to the wine sector, wine being one of the world's leading Made in Italy products, was notably finalised today.
The programme is being launched with three Italian companies operating in the wine sector that have individually issued mini-bonds, at a fixed rate and with a duration of 7 years, raising a total of €21 million to finance their investment and development plans in the domestic and international markets.
CDP and UniCredit, acting as anchor investors in the transaction, have each underwritten 50% of the total amount of these first issuances stemming from the programme.
The three companies involved are Feudi di San Gregorio Società Agricola S.p.A., founded in 1986 and now a leading company in southern Italy and abroad in the "wines from Campania" category; Masi Agricola S.p.A., listed in the AIM section of the Italian Stock Exchange and considered one of the world's leading producers of fine wines; and Pasqua Vigneti & Cantine S.p.A., founded in 1925 and recognised as a global ambassador of Veneto fine wines.
This closing with the emphasis on the wine sector will be the first of other potential issuances that may focus on other strategic sectors of the Italian economy.
Paolo Calcagnini, Deputy General Manager of CDP, has said "We are proud to announce this basket bond operation, which is a further example of CDP's capacity for financial innovation and enables us to support the growth of businesses through specific supply chain programmes in a sector that has become a real ambassador of the level of excellence associated with the Made in Italy label around the world. Furthermore, the operation has facilitated access to the capital market for companies that are not usually familiar with this type of instrument and strengthened our collaboration with UniCredit following the signing of the protocol in July 2020, which has already seen us underwrite a €1 billion loan for companies that have been particularly heavily affected by the Covid-19 emergency".
Francesco Giordano, co-CEO of Commercial Banking Western Europe at UniCredit, has said "We are particularly pleased to have dedicated this inaugural basket bond operation to companies in the wine sector, one of the best ambassadors in the world for excellence in Italian production, and at the same time one of the most heavily affected by the on-going emergency. We mobilise major new resources to support the working capital of the businesses in question and stimulate their investments. This provides companies in the sector with preferential access to the capital market, tapping into sources of financing outside of the banking sector that can be crucial to strengthening value chains, supporting innovation and diversifying products, markets and sales channels".
Antonio Capaldo, President of Feudi di San Gregorio has declared that "The operation will serve to strengthen our strategic growth programme; it's not easy, in the current context, to look ahead and continue to invest in the quality of products and processes, but the support of two partners such as UniCredit and CDP certainly boosts our levels of both energy and enthusiasm. The operation notably means that we will be investing in the production potential of DUBL, our sparkling wine produced using the classical method, which I believe we can grow even more now than we have been able to in the past".
Federico Girotto, Managing Director of MASI Agricola has said "We have worked on this operation with great conviction, together with Cassa Depositi e Prestiti and UniCredit, with whom we have maintained a very effective partnership for years now with the aim of supporting the development of major projects of strategic importance to our group. We are proud of the appreciation we have received, which we take as implicit recognition of our representativeness when it comes to the Made in Italy label, giving us further incentive to intensify the focus on our values, distinctive skills and profound respect for the country even more, including in terms of sustainability".
Riccardo Pasqua, Managing Director of Pasqua Vigneti e Cantine, has said "We are looking forward to this opportunity with great enthusiasm. The issuance of mini-bonds by our company will significantly accelerate the robust investment programme in support of the key projects in our portfolio; after years of vigorous growth, we have plans to strengthen our wine-growing and technological assets, as well as a roadmap for strengthening and expanding our direct distribution presence in strategic foreign markets".