The italian challenge bank illimity, founded by Corrado Passera, through its Investment Banking Division, has structured an innovative securitization operation for the benefit of two companies belonging to Trasteel Trading Holding S.A., an international trading and industrial group operating in the steel and metallurgical sector with legal headquarters in Switzerland (the “Operation”).
The Operation covers not only commercial credits but also the warehouse owned by two Italian subsidiaries of the group, Tamac S.r.l and Officine Tecnosider S.r.l. , with a total value of EUR 77 million. As part of the Operation, illimity acted as the Arranger, Sponsor, and Senior Investor.
The securitization operation was financed through the issuance of limited recourse Asset-Backed Securities (ABS) subscribed by illimity, third-party investors, and the originators. In detail, the Bank opted for, among other things, the non-possessory revolving pledge as collateral for the investment, distinguishing itself as the first credit institution to adopt this innovative legal instrument within a securitization operation.
In the decision to collaborate with the Trasteel Group, illimity positively assessed the group’s commitment to ESG issues. Procedures for carbon neutrality certification have been initiated since 2021, in addition to the ISO 9001, 14001, and 45001 certifications already obtained by almost all subsidiaries. The industrial companies of the Trasteel Group also recycle 100% of ferrous waste by selling it to commercial partners and promote the reuse of cooling water resulting from steel processing.
Specifically, Tamac, based in Massa (Italy), is the steel service center of the group, producing laminates for two main markets, automotive and the household appliance segment. Officine Tecnosider, located in the important steel district of San Giorgio di Nogaro (Udine -Italy), specializes in the production of steel sheets primarily for heavy carpentry and the naval sector.
With this operation, the structured securitization programs of illimity’s Investment Banking Division reach approximately EUR 1 billion.
Fabiano Lionetti, Head of Investment Banking at illimity, commented: “Alongside Trasteel, a leading group in its reference sector and attentive to sustainability, we have defined a comprehensive securitization program with a portfolio that includes not only commercial credits but also warehouse assets. We are the first in the market to carry out this type of operation, and this makes us particularly proud. We will continue our development strategy in the securitization world, thanks to innovative solutions aimed at meeting the needs of our clients in terms of working capital.”
Federico Guiducci, Chief Financial Officer of Trasteel Trading Holding, commented: “The financing structure finalized together with illimity, aimed at the securitization of commercial credits and financing for the raw material and finished product warehouse for Officine Tecnosider and Tamac, allows the two companies to benefit in terms of working capital financing and PfN thanks to the off-balance sheet treatment of the transferred credits. We had been looking for a solution of this kind for some time, and we found in illimity a partner who is prepared, fast, and willing to listen and find solutions to the client’s needs. The fact that this operation is unique in its kind is tangible proof and makes us proud.“
Managing Director of Credit Village, Roberto Sergio has more than 20 years of experience in NPL and distressed debt in the Italian and International market. He is the editor of the NPL column in Credit Village Magazine and the director of Credit Village's National NPL Market Observatory.