MINIBOND SCORECARD: MARKET TRENDS - Main indicators as of April 30th 2015

MINIBOND SCORECARD: MARKET TRENDS

Main indicators as of April 30^th 2015

MORE THAN 100 MINIBONDS ISSUED

The Minibond market exceeds 100 issued Minibonds: the number of SMEs that choose to access the private debt market is on the rise

After approximately one month from the last update, we present the English version of the new “Minibond Scorecard: Market Trends”.

Starting with this edition, as already happened for the Italian version, the Minibond Scorecard analysis will be conducted by MiniBondItaly together with Epic SIM (author of the “Minibond Trends” analysis) and it is renamed “Minibond Scorecard: Market Trends”. This concise but complete report will provide updated information with regard to the quarterly evolution of the Minibond market in Italy.

The English version of “Minibond Scorecard: Market Trends” will be published on a quarterly basis, one month after the release of the Italian version of the document, in order to grant access to a constant stream of accurate data regarding the Italian Minibond market.

As follows, a snapshot of the Italian Minibond market in the first four months of 2015 and the main developments compared to the last update presented at the end of 2014:

• More than 100 issued Minibonds, for a total value of almost €5 bn
• The upward trend in the number of securities continues, as we see a proportionate increase of issued Minibonds below €50 M in face value: in fact all 7 new issues during the month of April fall into this category
• A decrease, over the last months, of the average maturity and coupon rate, in line with the last quarter of 2014, confirming the market consolidation trend
• Strong concentration of issues in Northern Italy is confirmed
• During the first four months of 2015, there have been 10 Minibonds issued not exceeding €50 M in face value, thus confirming that a private debt market for Italian SMEs is indeed taking shape
• Average face value: €9.7M (compared to €9.5 M, the average as of March 31^st  2015)
• Average coupon rate: 5.8% (compared to 5.9%, the average as of March 31^st 2015)
• Average maturity: 5.6 years which decreases to 3.2 years by taking into account short term instruments (compared to 5.8 years, the average as of March 31^st 2015)

The main market indicators as of April 30^th 2015 are:

• 109 total Minibonds issued, amounting to an overall value of approximately €5 bn
• Minibonds with face value over €50 M count for 85% of the total value issued, while more than 70% comes from issues with nominal value of over €150 M

• 16% of the total value issued is represented by 90 Minibonds, each of them not exceeding €50 M in nominal value

MINIBOND SCORECARD: MARKET TRENDS is published by MinibondItaly.it, the first informational web portal and news aggregator overviewing the Italian Minibond market (developed and managed by Business Support, a strategy consulting and financial advisory firm).

Based on the number of accesses registered in these first months of 2015, we can definitely observe that there is growing interest regarding the topic of minibond coming from outside Italy. Indeed the data confirms that 20% of the total number of accesses on the webportal MiniBondItaly.it come from abroad:

• The first five countries to hold the record number of visits from abroad continue to be represented by the financial/ industrial centers at a global level: UK, France, Switzerland and Germany, with a rising number of visits from various areas of the US.
• The novelty is that, compared to previous months, the number of sessions coming from China and Japan is growing and has reached almost 2% of the total accesses made from abroad.

Interest from abroad is also confirmed by Epic SIM, who is seeing a growing number of foreign investors joining their fintech platform, mainly from Western Europe.

Together with MiniBondItaly.it, Epic SIM is the co-author of the MINIBOND SCORECARD: MARKET TRENDS. Epic SIM is the new fintech platform that directly connects private capital and SMEs.

MINIBOND SCORECARD: MARKET TRENDS analyzes, on a quarterly basis, the main characteristics of the Minibonds issued and provides a snapshopt of the average characteristics of those issues that do not exceed €50 M in face value.