An important securitization transaction was closed in the last few days, involving tax credits guaranteed by the Italian State: credits in the portfolio of the companies and businesses involved in the energy efficiency work falling under the 110% Super Bonus.
The securitization transaction was completed by iSwiss Bank, which issued the first tranche of the Asset-Backed Securities (ABS) for EUR 300 million.
This securitization is of absolute importance not only because of the capital raised but, above all, because it marks the beginning of a new phase in the financial market: with an instrument destined to meet with market favor and probably better than ordinary bank bonds. In fact, securities derived from the securitization of tax credits are, in the view of investors, safer and more secure than other investment instruments.
The choice of Single Notes goes in this direction of guaranteeing that the underlying securities are uniform in their type and quality. The yield of 3.5 percent and the duration of 10 years, maturing in October 2033, make it an absolute value instrument in today’s investment field.
While iSwiss Bank has the dual role of arranger and lead manager of the transaction, iSwiss Pay, a Canadian company, will be the paying agent. ISwiss Securities, the group’s Swedish company, will play a very important role and will be responsible for offering the securities to its large private and corporate client portfolio.
From the iSwiss group’s representative office, the group’s CEO, Christopher Aleo, makes the first official statements on the transaction.
“We have successfully concluded a complex transaction, which represents a starting point for a new system of access to credit for SMEs. Access to credit through the listing of securities was made practically impossible by the high costs that have to be incurred during the structuring and implementation of these operations. With the securitization system, iSwiss has succeeded in creating a dedicated and completely autonomous ecosystem that allows even smaller players to access the market. The prediction is that the way SMEs finance themselves will radically change in the coming years, moving away from credit institutions to the market.”
The iSwiss Group continues its growth: with the latest transactions, the securities issued that the banking group has managed has reached EUR 16.3 billion. The goal is to become a top player in the investment banking and securities market, offering various solutions for clients. The group’s growth in operations also continues, with the obtainment of various banking, financial, and insurance licenses in markets that show great growth potential, such as the Middle East and Africa.
