UniCredit confirms its market-leading position in minibonds: 100 Italian SMEs now supported with 690 million euros (+51% in one year)
With 31 issuances since the start of 2021, UniCredit has confirmed that its market-leading position in capital markets also extends to the small and medium enterprises segment via minibonds.
In volume terms, UniCredit has surpassed 690 million euros with a growth of 51% in a year that is proving how firms are increasingly turning towards this capital markets instrument as a means of financing their development and investment plans.
Specifically, the resources mobilized to date in support of the real economy in Italy are the result of:
- 66 issuances fully or partially underwritten by the bank, totaling more than 439 million in volume terms, spread over the whole of Italy and across a range of sectors
- 27 issuances of various Basket Bonds, with a total value of more than 129 million euros
- 7 minibonds worth 121 million euros were distributed to institutional investors.
Sustainable business models are also increasingly a feature in the use of this alternative financing instrument – to the extent that almost 30% of issuances in 2021 were undertaken by UniCredit on behalf of enterprises that incorporated ESG objectives.
When it comes to the areas that the issuing enterprises operate in, two economic sectorsstand out in terms of the number and volume of transactions: Food & Beverage, which benefited from the first tranche of the Supply Chain Basket Bond with CDP, dedicated to the wine industry, and Telecoms & IT. Next was the chemical and pharmaceutical industry; all manufacturing and service sectors were, however, well represented, confirming the instrument’s reach.
“We are particularly pleased to have reached this landmark of supporting 100 enterprises, but we want to go further. The minibond instrument enables us to mobilize significant resources behind Italian SMEs in support of their growth projects. At this stage of the recovery, this funding is more important than ever and supplements our traditional activities in support of the real economy. UniCredit has confirmed its position as the leading Italian bank for SMEs who wish to access the capital markets, encouraging them to diversify their sources of finance and enabling greater financial maturity in Italy’s entrepreneurial system towards alternative methods of funding investments.” said Niccolò Ubertalli, Head of UniCredit Italy,
The minibond issuance process is very much a training ground for the capital markets: it helps entrepreneurs who are the bank’s customers to familiarise themselves with the dynamics and regulations of the capital markets, such as certifying financial statements, setting out a 3-5-year business plan, respecting minimum capital requirements and updating company documentation to be suitable for issuing bonds.
Basket Bonds played a significant role in hitting the milestone of 100 issuances. These transactions feature minibond portfolios and help to boost interest from institutional investors for smaller amounts and small and medium enterprises: of the 27 minibonds issued under the Basket Bonds in which UniCredit acted as an arranger, 21 were related to the Puglia Basket Bond, backed by Regione Puglia, and 6 to the Supply Chain Basket Bond, an initiative supported by CDPto develop the Italian economy’s main supply chains.
Source: UniCredit’s Press Release from September 30, 2021