UniCredit's 100 minibonds in Italy

Clients

Thursday 30 September 2021

Recent transactions bring the number of Italian SME’s supported in their development and investment plans via our minibond tool to 100. 

2:00 min

Despite the unprecedented economic situation, 31 were issued solely in 2021. Read an insight in a brief interview to Alessandro Mallo, Head of Minibonds and Basket Bonds at UniCredit. Thanks to the recent transaction in favour of the Piedmont-based company dott. Gallina Srl, UniCredit has reached the milestone of 100 structured minibonds in support of Italian SMEs, recording an 67% increase in agreements in just one year.

690 Mln €

The volumes linked to the transactions

 

 

30%

The share of minibonds with ESG objectives issued in 2021

27 Issues

Made under the various Basket Bonds (21 of which relate to the Puglia Basket Bond)

We decided to find out more about this capital market tool by asking Alessandro Mallo, Head of Minibonds and Basket Bonds at UniCredit, three insightful questions given - data at hand – it is generating growing interest among companies that choose to adopt it in order to help finance their development and investment plans.


For further information on the support to Italian SMEs through the Minibonds and Basket Bonds’ tool you can refer to the UniCredit Press Release

1

When you started with the first minibond four years ago, surrounded by a halo of curiosity and a little skepticism, did you think you would achieve such an important goal in a relatively short time frame?

We were very confident, but we did not expect such a positive response in a relatively new market and from a customer segment not used to capital market operations. The result is even more impressive if we consider that the last year and a half has been characterised by the emergency triggered by the pandemic, which has led many companies to freeze investments.
2

What are the advantages of issuing a minibond for an SME instead of resorting to traditional medium- to long-term financing?

There are several, such as long-term funding and having a source of financing complementary to bank loans. Or familiarising yourself with the dynamics and rules of capital markets in what we have called a capital market training ground for minibonds subscribed by us, rather than accessing them directly through the Basket Bond structure. Lastly, to benefit from an important return in terms of image, thanks to the message of solidity that the company conveys to the market.
3

The basket bond, or portfolio bond, formula seems to have been particularly well received: why?

Basket Bonds allow an increased interest by institutional investors in SMEs, which on an individual basis, issuing small denominations, would find it difficult to access the capital market. With Basket Bonds, the various minibonds issued by individual companies are subscribed by a specially formed appliance, which in turn issues one or more notes with characteristics suited to each type of investor. In addition, the access of institutional investors in the financing of companies' development plans gives a greater guarantee to the other stakeholders of the company issuing the minibond.