ELITE Basket Bond: ELITE launches first bond transaction in partnership with Banca Finint
- Ten ELITE companies included in first ELITE Basket Bond; €122 million ten-year bond structured and distributed by Banca Finint
- European Investment Bank and Cassa Depositi e Prestiti are lead investors
- The ELITE Basket Bond is a unique way of providing debt financing to ELITE companies and offers an exclusive opportunity to invest in the real economy
- ELITE is London Stock Exchange Group’s international business support and capital raising programme for high-growth businesses
- 700 companies from across 27 countries make up growing ELITE community
Today ELITE, London Stock Exchange Group’s business support and capital raising programme, launches the first ELITE Basket Bond. The €122 million ten-year bond is made up of ten well performing and innovative Italian ELITE companies. It also marks the first closed financial transaction on ELITE Club Deal, ELITE’s private placement platform for ELITE companies and professional investors.
ELITE and Banca FININT, through its subsidiary FISG, have developed an innovative ’basket’ solution, designed to support access to funding for ELITE companies. A group of ELITE companies each issue a bond with similar characteristics, such as tax rate and maturity date, but for different values. These individual bonds are then grouped together under a securitisation transaction carried out by a Special Purpose Vehicle (SPV). The SPV issues an asset backed security through the ELITE Club Deal platform, which is the sum of each instrument. The shares are guaranteed by the issuing companies.
ELITE companies will use the proceeds of the bond to support their growth activities. The SPV bonds have been offered to institutional investors through ELITE Club Deal.
The ten ELITE companies include: Damiano, Irritec, L. Molteni & C. dei F.lli Alitti, M.E.P. Macchine Elettroniche Piegatrici, Objectway Group, Officine Metallurgiche G. Cornaglia, Peuterey, Radio Dimensione Suono, Svas Biosana, Tecnocap.
European Investment Bank (EIB) and Cassa Depositi e Prestiti (CDP) are the lead investors. They have been engaged in the due diligence process and have approved 50 per cent and 33 per cent respectively of the total value of the ELITE basket bond. A number of other professional investors, including Banca IFIS and Zenit SGR, have endorsed the project.
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