Investors in NPLs take the silk road on two ways. Chinese financial firms hold positions in Italian private debt while Italian money go to Asia.
Mikro Kapital, a lender to SMEs, started to pitch to Italian institutional investors the fundraising of Mikro Fund and Alternative Fund, two private debt funds for SMEs based in emerging markets (see here a previous post by BeBeez). Investors will subscribe Euro Medium Term Notes (EMTN) of the two funds paying a 7% coupon and with a 24-36 months tenure. Mikro Kapital belongs to General Invest, a firm that Vincenzo Trani, a former senior advisor to the European Bank for Reconstruction and Development, founded 10 years ago. Mikro Kapital is already active in Russia, Bielorussia, Romania, Moldavia, and Armenia. The firm can support startups and entrepreneurial projects that cannot receive bank loans yet.
Bank of China (BOC) holds 74% of Pasta Zara, the Italian food business that is in receivership (See here a previous post by BeBeez). Ffauf, the financial holding of the Bragagnoli Family, owner of the company, received a financing of 50 million of euros from BOC, which in exchange received as collaterals Pasta Zara’s inventories and brand. The list of the company’s lenders includes Banca Popolare di Vicenza and Veneto Banca (53 million),Mediocredito del Friuli (30 million), Mps (12 million), and Sace (20 million). The company also issued a minibond worth 5 million.
Agenzia delle Entrate (Italian Inland Revenue) pointed out that sole investors in unlisted bonds or other instruments of private debt don’t have to pay any tax (see here a previous post by BeBeez). The Authority replied to the official request for clarification on the matter that law firm Orrick forwarded on behalf of private capital asset manager Sici sgr. Agenzia delle Entrate further explained that sole investors in unlisted private debt issuances don’t have to pay 26% tax rate on coupons.
