Securitisation & Structured Solutions
New SME Initiative synthetic securitisation originated by Banca Agricola Popolare di Ragusa
Banca Akros acted as Financial Advisor
The following is a brief description of the Synthetic Securitisation that was successfully concluded in June 2020.
- Banca Agricola Popolare di Ragusa S.c.p.A (BAPR) and the European Investment Fund (EIF) signed a risk transfer agreement for lending to SMEs in the Sicily region under the SME Initiative Italy programme.
- Banca Akros acted as Financial Advisor to BAPR in the Transaction.
- The agreement, part of the “SME Initiative Italy”, was carried out in the form of a synthetic securitisation on a portfolio of existing loans, using guarantee funds of around €22 million to cover possible losses, made available by MISE with ESIF funds. At the same time, BAPR undertook to provide €200 million in new financing to SMEs over the next 36 months.
- With the signing of the SME Initiative Italy securitisation, BAPR decided to release part of the guarantees provided by the credit guarantee consortia, so as to restore their ability to guarantee new and additional credit to small and medium-sized entrepreneurs with the aim of relaunching growth, employment and entrepreneurship in Sicily.
- SME Initiative is an innovative risk transfer financial instrument provided for in the new regulations on European Structural and Investment Funds (ESIF) that allows funds managed at national (or regional) level to be combined with resources from the European COSME programme (Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises) and resources from the EIB Group.
- The transaction is the third SME Initiative Italy transaction and the ninth European Investment Fund guarantee transaction entered into by Italian regional banks with the support of Banca Akros’ Securitisation & Structured Solutions structure.
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