Pioneer Investments Italy launches fund investing in mini-bonds
Pioneer Investments’ Italy branch has launched Progetto Italia, a closed-ended fund which will invest in mini-bonds to support the country’s SMEs recovery.
The fund will invest in SMEs with profits between €10m and €100m as well as a minimum rating of B- at the time of investment. While selecting SMEs, Pioneer will also look at the companies’ competitiveness, sustainable and international growth plans. Independent advisory firm Eidos Partners will assist Pioneer Investments in the selection process.
The fund has a five-year duration and includes the possibility of annual dividend pay-outs to investors and will not exceed €200m total AUM.
Cinzia Tagliabue (pictured), CEO at Pioneer Investments Italy, commented: “Progetto Italia is aimed at supporting Italy’s economic recovery by improving the intermediary channel between the asset management industry and Italian SMEs.
“Drawing from Pioneer Investments’ international experience in direct lending and from the local strength of our Italian partner UniCredit, we aim at boosting excellence among Italy’s SMEs.”
According to Pioneer’s statement, mini-bonds are growing in the Italian market with more than 30 being listed on the Extramot Pro segment of Borsa Italiana. At present, the average total of mini-bonds issues reportedly comes at €12m.