Skip to main content
SpringerLink
Log in
Book cover

Banking and Beyond pp 215–236Cite as

Palgrave Macmillan

The Italian Minibonds Experience in Triveneto

  • Chapter
  • First Online:

  • 456 Accesses

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.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 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. 2.

    Finanziaria internazionale is the only firm with NACE Rev.2 code identifying a strictly financial company.

  3. 3.

    The research conducted by Politecnico di Milano School of Management considers debt securities complying with the following requirements:

    1. (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.

    2. (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.

    3. (c)

      The issue amount is strictly below €500 million (considering the cumulated value of any issue from the same company in the same month).

    4. (d)

      The minibond is not convertible into equity capital and is not listed on a regulated exchange open to retail investors.

  4. 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. 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.

References

  • 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).

    Google Scholar 

  • 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).

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Article  Google Scholar 

  • Banca d’Italia. 2019a. L’economia Del Friuli Venezia Giulia. Economie Regionali.

    Google Scholar 

  • ———. 2019b. L’economia Del Veneto. Economie Regionali.

    Google Scholar 

  • ———. 2019c. L’economia Delle Province Autonome Di Trento e Bolzano. Economie Regionali.

    Google Scholar 

  • 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.

    Article  Google Scholar 

  • Broccardo, E., L. Erzegovesi, and M. Mazzuca. 2014. I Minibond e i Modelli Di Finanziamento Delle Imprese. Bancaria 7/8.

    Google Scholar 

  • Caratelli, M., and L. Fattobene. 2018. Strumenti Alternativi Di Finanziamento per Le PMI: Mini-Bond, Crowdfunding e Business Lending. Bancaria 11.

    Google Scholar 

  • 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.

    Article  Google Scholar 

  • EC. 2019. 2018 SBA Fact Sheet Italy. European Commission, 1–19.

    Google Scholar 

  • 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.

    Article  Google Scholar 

  • Global Capital 2018. Private debt markets. USPPs, Schuldscheine, Euro PPs, Unitranche, Direct Lending, Unrated Bonds, MTNs, Regulation, April 2018, retrieved at https://www.globalcapital.com/special-reports?issueId=b181cj0xkk8p2v

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • Kale, J., and C. Meneghetti. 2011. The Choice between Public and Private Debt: A Survey. IIMB Management Review 23 (1): 5–14.

    Article  Google Scholar 

  • Landi, G., D. Colantonio, and M. Soriani. 2017. Minibond Strumenti Di Debito Alternativi.

    Google Scholar 

  • Minnetti, F. 2015. Minibond e Pmi: Le Condizioni per Un’affermazione Duratura. Bancaria 5.

    Google Scholar 

  • 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.

    Google Scholar 

  • Osservatorio Mini-bond. 2018. Osservatorio Mini-Bond 5° Report Italiano Sui Mini-Bond.

    Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Google Scholar 

  • Riccio, S. 2018. Regime fiscale dei minibond non quotati, Forum Iuris website, retrieved at https://www.forumiuris.it/regime-fiscale-dei-minibond-non-quotati/

  • Rossi, E. 2014. Minibond Le Prime Esperienze Di Quotazione Sul Mercato Obbligazonarie ExtraMot Pro. Bancaria 12.

    Google Scholar 

  • Schweizer, D., J. Proelss, and M. Mietzner. 2015. Hidden Champions or Black Sheep? Evidence from German Mini-Bonds. SSRN.

    Google Scholar 

  • Thomadakis, A. 2017. Developing EU Capital Markets for SMEs: Mission Impossible? ECMI Commentary 46.

    Google Scholar 

  • 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.

    Google Scholar 

Websites

Download references

Author information

Authors and Affiliations

  1. Department of Management, Ca’ Foscari University of Venice, Venice, Italy

    Nicola Carta & Caterina Cruciani

Authors
  1. Nicola Carta
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Caterina Cruciani
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Caterina Cruciani .

Editor information

Editors and Affiliations

  1. Department of Management, Ca’ Foscari University of Venice, Venice, Italy

    Caterina Cruciani

  2. Department of Management, Ca’ Foscari University of Venice, Venice, Italy

    Gloria Gardenal

  3. Department of Management, Ca’ Foscari University of Venice, Venice, Italy

    Elisa Cavezzali

Rights and permissions

Reprints and permissions

Copyright information

© 2020 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Carta, N., Cruciani, C. (2020). The Italian Minibonds Experience in Triveneto. In: Cruciani, C., Gardenal, G., Cavezzali, E. (eds) Banking and Beyond. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-45752-5_10

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-45752-5_10

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-45751-8

  • Online ISBN: 978-3-030-45752-5

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation