Italy's private debt and NPEs weekly roundup. News from SGA, UBI Banca, Gacs, Unicredit, Corvallis, CTI, ProGes, Codess, Groupama, Banca Valsabbina, Sagitta, Ital Gas Storage, Barletta, IMA

Italian servicer Sga (Società Gestione Attività) launched the Cuvèe project, a fund for investing in real estate Utps of Italian banks, together with Prelios sgr  (see here a previous post by BeBeez). The fund may have resources for 1-2 billion euros in its first stage and later raise up to 4 billion. Sagitta sgr (fka Vegagest), Dea Capital Real Estate sgr, Reag, Duff & Phelps, and Yard also expressed interest in partnering with SGA. BancoBpm, Mps, Ubi Banca, and Carige will get stakes of the fund of the same value as the real estate UTPs that they will sell to the fund. Standard & Poor’s (S&P’s) assigned a BBB rating with negative outlook to SGA (see here a previous post by BeBeez). SGA’s unsecured bond received the same rating. SGA issued a 250 million euros bond last February which is part of a one billion euros EMTN Program.
Ubi Banca sold to a portfolio of bad loans with a face value of 900 million euros (157 million of factoring creditsto an undisclosed buyer  and 740 million of leasing credits to Credito Fondiario) (see here a previous post by BeBeez). The parties will set a special purpose vehicle for the securitization of these credits and a leasing company (LeaseCo) that will buy the positions and the underlying goods in order to take advantage of the fiscal incentives for this kind of transactions (see here the Insight View of BeBeez, 2018 NPL Report of BeBeez, and the July 2019 NPL Report of  BeBeez available to the subscribers of BeBeez News Premium; find out here how to subscribe for just 20 euros per month).
Since the implementation of public warranty system Gacs in 2016 until March 2019, the gross value of securitizations of bad loans with public guarantee has been of 62.7 billion euros, 35% of the value of distressed credit transactions for the same time fram, said the PwC report “The Italian Npl Market. Assembling the Puzzle” (see here a previous post by BeBeez). PwC considered 21 transactions with portfolios of distressed credits (58% of them were on average secured) as underlying assets. The median amount of senior notes have been 19% of the portfolio gross value, mezzanine notes amounted to 3%, and junior notes to 2%. The average weighed rate of the notes has been of 0.8%, 7% for the mezzanine tranches (with a peak of 8% for the mezzanine tranche of the securitization of Mps  named Siena NPL 2018 and further peaks of 7.7% for the securitizations 2Worlds of Banco Desio e Brianza, 4Mori Sardegna of BPER, Juno 1 and Juno 2 of Bnl, andLeviticus of Banco Bpm. The securitization FINO 1 of Unicredit generated the lowest yield for its mezzanine tranche (4.8%). The value of NPEs at the end of 2018 has been of 180 billion euros, while in 2015 it reached a 341 billion peak. The July 2019 NPL Report of  BeBeez details further data and figures (these items are available to subscribers of BeBeez News Premium,find out here how to subscribe for just 20 euros per month).
Unicredit Bank Hungary sold a portfolio of distressed mortgage and overdraft credits worth 28 million euros to Hungarian financial firm EOS Faktor Zrt (see here a previous post byBeBeez). Unicredit signed a three years agreement with EOS for the sale of further portfolio of distressed mortgage and overdraft credits, unsecured consumer credits, and loans for the SMEs.
Italian IT company Corvallis Holding listed on Milan market minibonds for 15 million euros (see here a previous post by BeBeez). The bonds will pay a 4.75% coupon and mature on December 2024. The company will invest such proceeds in refinancing its current liabilities and in its organic development. Corvallias has net financial debts of 33 million, sales of 158.8 million, an ebitda of 16.6 million, and net profits of 5.4 million (1.9 million yoy). Alkemia Capital Partners (fka Nem) has 45% of Corvallis, while Antonio Santocono (chairman) and Enrico Del Sole (ceo) have a controlling stake. Corvallis is one of the companies that BeBeez Private Data monitors. Find out here how to subscribe to the Combo Version that includes the reports and the insight views of BeBeez News Premium 12 months catching our Summer offer.
CTI FoodTech, an Italian producer of machinery for the fruit industry, listed its minibonds on Milan market (see here a previous post by BeBeez). The European Investment Fund secured such an issuance that Banca Sella entirely subscribed. The bond is worth one million euros, pay a 3.9% coupon with an amortizing reimboursment structure and are due to mature on January 2021. CTI has sales of 3.8 million, an ebitda of one million, and a net financial debt of 3.9 million. The company will invest the raised proceeds in its organic development.
Pro.Ges. Trento Società Cooperativa Sociale Onlus issued a social minibond of 500k euros due to mature in 2023 for supporting the regional activities of people care (see here a previous post by BeBeez). Mediocredito Trentino Alto Adige subscribed the bond. Mediocredito Trentino Alto Adige made available 10 million for subscribing minibonds issued by companies based in the Region worth up to 1.5 million. In 2018 Italian private companies issued minibonds for 645 million (see here the 2018 BeBeez Private Debt Report available to the subscribers of BeBeez News Premium; find out here how to subscribe for just 20 euros per month).
Italian non profit Codess Sociale Onlus issued a social minibond worth 5 million euros with a 7 years maturity that Unicredit entirely subscribed (see here a previous post by BeBeez). This is the first social minibond that Unicredit subscribed and is part of the bank’s program for Social Impact Banking. Codess Sociale supply assistance and social services in Italy and has sales of 125 million. Codess will invest the raised proceeds in care homes for elderly people
Groupama Asset Management is looking again for subscribers of its direct lending Supply Chain Fund, an invoice financing fund that buys commercial credits directly from Italian SMEs (see here aprevious post by BeBeez). The fund aims to raise 60 million euros by 6 September. Till now the fund had raised 110 million euros from investors, of which 80 millions directly by Groupama.
Banca Valsabbina, through the vehicle Valsabbina Sme spv, has securitized receivables from Italian SMEs and issued asset-backed securities of Class A for 542.2 million euro, which obtained A (low) (sf) ratings by DBRS. Those abs notes have been listed on the ExtraMot Pro market last  Friday 19th. The same spv has also issued junior securities with no rating for  318.3 million euros, which have not been listed. Thel isted  notes (ISIN code: IT0005380115) pay a variable quarterly coupon equal to the 3-month Euribor rate  plus 50 basis points and expire in July 2021.
 
Sagitta sgr signed a partnership with CrescItalia Holding and launched SGT CrescItalia Invoice Fund, an investor in unexpired commercial invoices of SMEs that will implement fintech platform Crescitalia LAB (see here a previous post by BeBeez). SGT CrescItalia Invoice Fund set a 200 million euros fundraising target. Sagitta is the new name of Vegagest a financial firm that since 2018 belongs to Arrow Global Group, a London-listed debt investor. Sagitta will buy insured invoices that are still valid and worth 50,000 -0.5 million euros with a payment deadline between 30 and 180 says.
Ital Gas Storage, an Italian energy company of which Morgan Stanley Infrastructure Partners owns 92.5%, signed a restructuring agreement for its 1.056 billion euros banking debt (see here a previous post by BeBeez). The financing line is now of 866 million as the costs for the construction of a gas stocking plant diminished. Whysol owns 7.5% of Ital Gas Storage.
Italian real estate developer Barletta Group issued a property development bond of 120 million euros due to mature in 42 months that Cain International, a real estate investor, subscribed (see here a previous post by BeBeez). Barletta will invest such proceeds in the hotel brands Soho House and Rosewood Hotels in Italy through the construction of one hotel in Rome and another Venice.
IMA, the listed Italian producer of machinery for packaging, that acquired a 63% stake in  ATOP from Charme last May, reaching an 84% total stake, signed the closing of the deal in the last few days and financed the transaction with both a bond of 50 million euros and a credit line of 180 million (see here a previous post by BeBeez). IMA already held 21% of ATOP, a manufacturer of machines and automatic lines for the production of wound stators and rotors of electric motors. The bond has a maturity of 7 years and Amundi Dette Senior FPE subscribed it in private placement.