Euronext assigns ISIN to the first tranche of Italian Tax Credit securities

iSwiss Bank launches ABS securities backed by 300 million euros tax credits

By Samantha Thacker

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Published: Tue 5 Dec 2023, 6:02 PM

In a global financial environment characterised by relentless change, iSwiss Bank has distinguished itself by setting a new standard in the industry. Recently, the bank issued the first tranche of Asset-Backed Securities (ABS), backed by tax credits related to the Italian superbonus 110, worth almost 300 million euros. This innovative move, confirmed by iSwiss CEO Aleo Christopher, marks a step change in the financial market.

The CEO of iSwiss Bank, Aleo Christopher, explained how, for the first time, the tax credits of the Superbonus 110 were transformed into securitised financial instruments, introducing new opportunities for SMEs seeking liquidity. The market reaction was highly positive, indicating a growing interest in this type of financial product, perceived as more stable than traditional bank loans.

The details of the ABS tranche are remarkable: it offers an annual interest rate of 3.5 per cent and has a maturity date of October 2033. As Christopher pointed out, A distinctive feature is a single note, a strategic choice to emphasise the uniformity and quality of the underlying assets.

In addition, iSwiss plans to list this tranche in the professional segment of the London Stock Exchange, assuming the role of price maker. The bank has also expanded its global presence by opening a new office in the UK.

The role of iSwiss Bank in the deal is crucial, as Aleo pointed out, to minimise dependence on external entities and reduce costs, especially for its clients. "Quotations and securities issues are costly in the initial phase," said Aleo, "especially for the consulting part, which is carried out by a few entities internationally and operates as an oligopoly. The other costs of quotations prevent the recourse to the financial market, as a financing channel, by SMEs that cannot afford millionaire fees from these players. As iSwiss Bank, we have created an autonomous ecosystem; we can offer access to the financial market at low costs. We foresee that in the near future, SMEs will easily be able to finance themselves on the market and not only with banks as is the case today," concludes Aleo.

In the newly launched securitisation transaction, iSwiss PAY in Canada will act as a paid agent. iSwiss Bank will play a dual role as arranger and exclusive lead manager of the transaction.

Also significant is the involvement of iSwiss Securities, the group's Swedish company, which will participate by offering the new 110 superbonus securities to its customers. iSwiss Securities, a Swedish-supervised company, is a securities manager with over ten years of experience and a portfolio of private and business customers. The company was recently acquired by iSwiss Bank, which integrated its securities account management.

Recently, iSwiss has also expanded its presence in the Gulf countries and Africa, managing a client and investment portfolio close to that of Europe.

Managing securities issues of 16.3 billion euros, iSwiss Bank aims to become a leader in investment banking and the securities market. Operating a payments network, being a member of SWIFT, and having direct access to the Euroclear and Clearstream securities trading systems, the iSwiss group offers comprehensive and global financial solutions.

The group also aims to make the stock market accessible to small and medium-sized companies, with an ongoing commitment to liquidating Italian SMEs' tax credits. Up to 2025, there will be around 30 billion euros in earthquake-related bonuses. iSwiss is already expanding its securitisation services to real estate projects, including in emerging markets and renewable energy.

The superbonus 110 ABS were given an ISIN code IE0003FNUZ18, with a FISN of LUXST SEC/3.5 ASST BKD 20331030 EUR and the CFI Code DAFSFN, marking a historical moment in structured finance and positioning iSwiss Bank as an innovative pioneer in the field of ABS.

— Samantha Thacker is an economist. She delves into the intricate web of financial trends and their implications on global markets for Mahalsa.us.Views expressed are her own and do not reflect the newspaper’s policy.


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