Skip to main content
Top

2020 | OriginalPaper | Chapter

10. The Italian Minibonds Experience in Triveneto

Authors : Nicola Carta, Caterina Cruciani

Published in: Banking and Beyond

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

This paper focuses on a relatively new form of corporate debt financing available to Italian SMEs called “minibonds”. Minibonds may be described as fixed-income securities with a medium–long term expiration date, issued by listed or non-listed SMEs aimed at supporting growth projects, future developments or refinancing operations. This paper focuses on the North-East area of Italy and looks at the difference between listed and non-listed issues of minibonds. This paper explores whether this choice is structurally determined and how recent normative developments may affect it and the overall demand for minibonds by investors. Moreover, we explore the literature trying to identify criteria for the determination of potential emitters and show that existing criteria likely underestimate the true potential supply and are largely ignored by firms.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Footnotes
1
Costs for issues below €50 million include balance sheet certification (€5000–15,000), adviser and arranger costs (between 0.5% and 1.5% of the issue) and other costs related to the preparation of the proper documentation by an accredited legal firm (between €15,000 and €25,000). These costs do not include listing costs for the ExtraMotPro and rating costs. All issue costs are tax-deductible (Osservatorio Mini-bond 2018).
 
2
Finanziaria internazionale is the only firm with NACE Rev.2 code identifying a strictly financial company.
 
3
The research conducted by Politecnico di Milano School of Management considers debt securities complying with the following requirements:
(a)
The issuer is an Italian company (or with operations carried out mainly in Italy), which is not interested by bankruptcy events or arrangements with creditors.
 
(b)
The issuer is not a banking or insurance company, nor an asset management company supervised by market authorities, nor a “shell company” owned by an investor just to carry out an acquisition or a securitization deal.
 
(c)
The issue amount is strictly below €500 million (considering the cumulated value of any issue from the same company in the same month).
 
(d)
The minibond is not convertible into equity capital and is not listed on a regulated exchange open to retail investors.
 
 
4
Manufacturing refers to NACE Rev.2 code X, while services includes activities registered with NACE Rev.2 codes I, J, M and S; Others includes activities with NACE Rev.2 codes D-H, L, N, Q and R.
 
5
The criteria we used to extract firms from the AIDA Database are regions = Veneto, Trentino-Alto Adige and Friuli-Venezia Giulia, annual turnover between 3 and 100 million, EBITDA/turnover ≥ 5, debt/EBITDA ≤ 5.
 
Literature
go back to reference Abdulsaleh, A.M., and A. Worthington. 2013. Small and Medium-Sized Enterprises Financing: A Review of Literature. International Journal of Business and Management 8 (14). Abdulsaleh, A.M., and A. Worthington. 2013. Small and Medium-Sized Enterprises Financing: A Review of Literature. International Journal of Business and Management 8 (14).
go back to reference Accornero, M., P. Finaldi Russo, G. Guazzarotti, and V. Nigro. 2015. First-Time Corporate Bond Issuers in Italy. Occasional Papers (Questioni Di Economia e Finanza), Banca d’Italia, April (269). Accornero, M., P. Finaldi Russo, G. Guazzarotti, and V. Nigro. 2015. First-Time Corporate Bond Issuers in Italy. Occasional Papers (Questioni Di Economia e Finanza), Banca d’Italia, April (269).
go back to reference Altman, E.I., M. Esentato, and G. Sabato. 2018. Assessing the Credit Worthiness of Italian SMEs and Mini-Bond Issuers. Global Finance Journal. no. 100450. Altman, E.I., M. Esentato, and G. Sabato. 2018. Assessing the Credit Worthiness of Italian SMEs and Mini-Bond Issuers. Global Finance Journal. no. 100450.
go back to reference Angelini, M., A. Gennaro, and R. Giovannini. 2019. Financial Policy of Italian SMEs: The Impact of Mini-Bond. Corporate Ownership and Control 16 (3): 113–128.CrossRef Angelini, M., A. Gennaro, and R. Giovannini. 2019. Financial Policy of Italian SMEs: The Impact of Mini-Bond. Corporate Ownership and Control 16 (3): 113–128.CrossRef
go back to reference Banca d’Italia. 2019a. L’economia Del Friuli Venezia Giulia. Economie Regionali. Banca d’Italia. 2019a. L’economia Del Friuli Venezia Giulia. Economie Regionali.
go back to reference ———. 2019b. L’economia Del Veneto. Economie Regionali. ———. 2019b. L’economia Del Veneto. Economie Regionali.
go back to reference ———. 2019c. L’economia Delle Province Autonome Di Trento e Bolzano. Economie Regionali. ———. 2019c. L’economia Delle Province Autonome Di Trento e Bolzano. Economie Regionali.
go back to reference Berger, A., and G. Udell. 1998. The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth Cycle. Journal of Banking and Finance 22 (6): 613–673.CrossRef Berger, A., and G. Udell. 1998. The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth Cycle. Journal of Banking and Finance 22 (6): 613–673.CrossRef
go back to reference Broccardo, E., L. Erzegovesi, and M. Mazzuca. 2014. I Minibond e i Modelli Di Finanziamento Delle Imprese. Bancaria 7/8. Broccardo, E., L. Erzegovesi, and M. Mazzuca. 2014. I Minibond e i Modelli Di Finanziamento Delle Imprese. Bancaria 7/8.
go back to reference Caratelli, M., and L. Fattobene. 2018. Strumenti Alternativi Di Finanziamento per Le PMI: Mini-Bond, Crowdfunding e Business Lending. Bancaria 11. Caratelli, M., and L. Fattobene. 2018. Strumenti Alternativi Di Finanziamento per Le PMI: Mini-Bond, Crowdfunding e Business Lending. Bancaria 11.
go back to reference Denis, D., and V. Mihov. 2003. The Choice among Bank Debt, Non-Bank Private Debt, and Public Debt: Evidence from New Corporate Borrowings. Journal of Financial Economics 70 (1): 3–28.CrossRef Denis, D., and V. Mihov. 2003. The Choice among Bank Debt, Non-Bank Private Debt, and Public Debt: Evidence from New Corporate Borrowings. Journal of Financial Economics 70 (1): 3–28.CrossRef
go back to reference EC. 2019. 2018 SBA Fact Sheet Italy. European Commission, 1–19. EC. 2019. 2018 SBA Fact Sheet Italy. European Commission, 1–19.
go back to reference Feihle, P., and J. Lawrenz. 2017. The Issuance of German SME Bonds and Its Impact on Operating Performance. Schmalenbach Business Review 18 (3): 227–259.CrossRef Feihle, P., and J. Lawrenz. 2017. The Issuance of German SME Bonds and Its Impact on Operating Performance. Schmalenbach Business Review 18 (3): 227–259.CrossRef
go back to reference Grasso, A., and F. Pattarin. 2019. Risk and Pricing on the Italian Minibond Market. In Frontier Topics in Banking: Investigating New Trends and Recent Developments in the Financial Industry, ed. E. Gualandri, V. Venturelli, and A. Sclip, 45–72. Springer International Publishing. Grasso, A., and F. Pattarin. 2019. Risk and Pricing on the Italian Minibond Market. In Frontier Topics in Banking: Investigating New Trends and Recent Developments in the Financial Industry, ed. E. Gualandri, V. Venturelli, and A. Sclip, 45–72. Springer International Publishing.
go back to reference Johnson S. 1997. An Empirical Analysis of the Determinants of Corporate Debt Ownership Structure, The Journal of Financial and Quantitative Analysis, Vol. 32, No. 1 (Mar., 1997), pp. 47–69. Johnson S. 1997. An Empirical Analysis of the Determinants of Corporate Debt Ownership Structure, The Journal of Financial and Quantitative Analysis, Vol. 32, No. 1 (Mar., 1997), pp. 47–69.
go back to reference Kale, J., and C. Meneghetti. 2011. The Choice between Public and Private Debt: A Survey. IIMB Management Review 23 (1): 5–14.CrossRef Kale, J., and C. Meneghetti. 2011. The Choice between Public and Private Debt: A Survey. IIMB Management Review 23 (1): 5–14.CrossRef
go back to reference Landi, G., D. Colantonio, and M. Soriani. 2017. Minibond Strumenti Di Debito Alternativi. Landi, G., D. Colantonio, and M. Soriani. 2017. Minibond Strumenti Di Debito Alternativi.
go back to reference Minnetti, F. 2015. Minibond e Pmi: Le Condizioni per Un’affermazione Duratura. Bancaria 5. Minnetti, F. 2015. Minibond e Pmi: Le Condizioni per Un’affermazione Duratura. Bancaria 5.
go back to reference Muller, P., A. Mattes, D. Klitou, O. Lonkeu, P. Ramada, F. Ruiz, and J. Farrenkopf. 2018. Annual Report on European SMEs The 10th Anniversary of the Small Business Act. Muller, P., A. Mattes, D. Klitou, O. Lonkeu, P. Ramada, F. Ruiz, and J. Farrenkopf. 2018. Annual Report on European SMEs The 10th Anniversary of the Small Business Act.
go back to reference Osservatorio Mini-bond. 2018. Osservatorio Mini-Bond 5° Report Italiano Sui Mini-Bond. Osservatorio Mini-bond. 2018. Osservatorio Mini-Bond 5° Report Italiano Sui Mini-Bond.
go back to reference Ou, C., and G. Haynes. 2006. Acquisition of Additional Equity Capital by Small Firms - Findings from the National Survey of Small Business Finances. Small Business Economics 27 (2–3): 157–168.CrossRef Ou, C., and G. Haynes. 2006. Acquisition of Additional Equity Capital by Small Firms - Findings from the National Survey of Small Business Finances. Small Business Economics 27 (2–3): 157–168.CrossRef
go back to reference Riccio, G. 2016. Direct Access to the Debt Capital Market by Unlisted Companies in Italy and the Effects of Changes in Civil Law: An Empirical Investigation. In Financial Crisis, Bank Behaviour and Credit Crunch, ed. Stefania P.S. Rossi and Roberto Malavasi, 179–193. Springer International Publishing. Riccio, G. 2016. Direct Access to the Debt Capital Market by Unlisted Companies in Italy and the Effects of Changes in Civil Law: An Empirical Investigation. In Financial Crisis, Bank Behaviour and Credit Crunch, ed. Stefania P.S. Rossi and Roberto Malavasi, 179–193. Springer International Publishing.
go back to reference Rossi, E. 2014. Minibond Le Prime Esperienze Di Quotazione Sul Mercato Obbligazonarie ExtraMot Pro. Bancaria 12. Rossi, E. 2014. Minibond Le Prime Esperienze Di Quotazione Sul Mercato Obbligazonarie ExtraMot Pro. Bancaria 12.
go back to reference Schweizer, D., J. Proelss, and M. Mietzner. 2015. Hidden Champions or Black Sheep? Evidence from German Mini-Bonds. SSRN. Schweizer, D., J. Proelss, and M. Mietzner. 2015. Hidden Champions or Black Sheep? Evidence from German Mini-Bonds. SSRN.
go back to reference Thomadakis, A. 2017. Developing EU Capital Markets for SMEs: Mission Impossible? ECMI Commentary 46. Thomadakis, A. 2017. Developing EU Capital Markets for SMEs: Mission Impossible? ECMI Commentary 46.
go back to reference Thompson, J., K. Boschmans, and L. Pissareva. 2018. Alternative Financing Instruments for SMEs and Entrepreneurs: The Case of Capital Market Finance. OECD Papers on SMEs and Entrepreneurship. Thompson, J., K. Boschmans, and L. Pissareva. 2018. Alternative Financing Instruments for SMEs and Entrepreneurs: The Case of Capital Market Finance. OECD Papers on SMEs and Entrepreneurship.
Metadata
Title
The Italian Minibonds Experience in Triveneto
Authors
Nicola Carta
Caterina Cruciani
Copyright Year
2020
DOI
https://doi.org/10.1007/978-3-030-45752-5_10