CDP S.p.A. and Kedrion S.p.A. Yankee bond issuances mark a strong return for Italian issuers into the US capital market in 2023
Following challenging and highly volatile market conditions in the past two years against the backdrop of a pandemic, supply-chain disruptions, high inflation and continuous hikes of interest rates, global capital market activity has gradually been showing positive signs at the end of 2022 and into 2023[1]. As macro-economic factors continue to shift this year, Italian corporate debt issuers have made a dynamic comeback in the US capital markets in the first semester of 2023.
On April 21, 2023, plasma-derivative producer Kevlar S.p.A. issued $790 million 6.5% Senior Secured Notes due 2029. Kevlar S.p.A. is a joint stock company incorporated in Italy and a direct subsidiary of Kedrion Holding S.p.A. The proceeds of the Notes, together with a $75 million senior secured term loan A, were used to repay the $865 million bridge facilities incurred to finance the acquisition and combination of Kedrion S.p.A. and Bio Products Laboratory by Permira. The bookrunners of the placement were BNP Paribas, Credit Agricole CIB, Intesa Sanpaolo, Morgan Stanley, Natixis and UniCredit.
Shortly after on April 28, 2023, Cassa Depositi e Prestiti S.p.A. (CDP) issued $1 billion 5.750% Notes due 2026. The issue, which supported CDP’s strategy of attracting USD capital and broadening its investor base, attracted significant interest from financial markets. The transaction involved a syndicate of banks, with the following serving as joint bookrunners: BNP Paribas, BofA Securities, Citi, Goldman Sachs International, HSBC, IMI – Intesa Sanpaolo, J.P. Morgan, Morgan Stanley and Société Générale. Citi and J.P. Morgan also acted as global coordinators for the transaction.
While the two issuances catered to different needs and achieved different strategic objectives for their issuers, both were made possible thanks to Acupay’s unique, innovative mechanics and technology. Amongst numerous strategic, financial, marketing and investor relation advantages of the Acupay solution, Italian corporate issuers can diversify their funding strategies, access foreign capital, and increase their reach to a global investor base.
For more information regarding how we empower issuers to access foreign debt capital markets, whilst benefiting from available withholding tax reductions, or exemptions, for eligible investors, you may contact Acupay’s Product team.