MINIBOND SCORECARD: MARKET TRENDS
Main indicators as of January 31st 2016
THE FIRST MINIBOND ISSUED IN 2016 IN THE NEW MINIBOND SCORECARD: MARKET TRENDS
2015 ended on a positive note and with the hope that 2016 would begin on the same note. Indeed, 18 new issues have been registered during the Nov 2015 – Jan 2016 period, three of which, registered in January, concern integrated urban water management firms from Northern and Southern Italy: this proves that minibonds have become an attractive instrument for companies from all sectors.
Trefin, a small Neapolitan “data system” firm, has also issued a minibond, this being a signal that even Southern Italy is starting to make some progress, although overall still lagging behind on the bond market.
In the English version of “Minibond Scorecard: Market Trends” - also aimed at foreign financial professionals who keep a close eye on the financial situation of our country - we show the latest data regarding the Italian bond market. Based on information gathered by Minibonditaly.it we can see that in these last months we experienced a surge in the number of visits on our news portal from the United States and from the Far East (China, Japan, South Korea). Visits from the main European financial hubs (France, Germany, UK) are steady.
Let us take a detailed look at what has changed compared to the last update:
- 155 issued minibonds for a total value of approximately €5.6 bn (+6.3% vs 31st October 2015)
- Increase of minibonds below €50 M in face value: in fact 16 out of 18 new issues in the Nov-Jan period fall into this category
- Decrease of the average coupon rate, consistent with the previous quarter, confirming the market consolidation trend
- Increase of the average maturity essentially because of 6 new issues with an average maturity above 18 years
- Power and Utilities registered the highest variation (+4.6% of volumes issued vs Oct), mainly thanks to new issues of Etrion, Alto Trevigiano Servizi and Acque Veronesi
- Strong concentration of issues in Northern Italy is confirmed
The updated average profile of minibonds not exceeding €50 M is the following:
- Average face value: €9.5M
- Average coupon rate: 5.48%
- Average maturity: 5.9 years
MINIBOND SCORECARD: MARKET TRENDS is published by MinibondItaly.it in collaboration with Epic SIM and provides quarterly updates on the evolution of the Minibond market in Italy; the English version is released one month after the Italian one, ensuring a constant stream of accurate data.
MinibondItaly.it is 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).
Epic SIM manages the new fintech platform www.epic.it that directly connects private capital and SMEs.