Securitization

Securitization (as defined by Italian law 130/99) involves selling financial assets that can produce cash flows over a number of years and then converting these assets into securities that can be traded on financial markets. The concept of securitization was only introduced into Italian legislation in April 1999, with the passing of law no. 130/99. Receivables are generally sold to a company that then issues marketable securities based on these assets which can be traded on domestic and international financial markets. The company promoting the transaction (the originator) is legally released from its obligations toward the special purpose vehicle (SPV) issuing the securities.

SIGC, as non-bank financial intermediary, can act as both arranger (i.e. structuring the transaction and analyzing the securitized portfolio) and as sub-servicer in managing debt recovery in out-of-court settlements and court proceedings. SIGC has performed three securitization transactions. The SIGC subsidiary SICARC (registration no. 107 on the special list maintained by the Bank of Italy) meets the requirements of Italian law no. 130/99 in order to act as SPV for the securitized portfolio.