CDP launches a Social Response Bond to help Italy recover from the Coronavirus emergency

22/04/2020

CDP is the first issuer of a Social Bond to support the Italian economy so hardly affected by the Covid-19 emergency with the “Covid-19 Social Response Bond” a 1 billion euro dual-tranche senior unsecured transaction.

Cassa Depositi e Prestiti Spa (CDP) is the Italian National Promotional Institute aimed to foster sustainable development in Italy, using the country’s savings responsibly to support growth and boost employment, supporting innovation, business competitiveness, infrastructure and local development.

CDP is showing its critical role in supporting the Italian economy by issuing the first social bond to provide financial support to Italian enterprises and local authorities during the Covid emergency and, more globally, to support the recovery of Italian economy and communities which are facing the dramatic consequences of an unprecedented sanitary crisis.

This transaction, structured as a €1 billion dual tranche 3-year and 7-year benchmark senior unsecured bond, has been almost 2x oversubscribed. More than 130 investors placed orders in the books, with a meaningful participation from Socially Responsible Investors as well as foreign investors, which illustrate their attention to initiatives of high social and environmental impact and show a strong positive signal to Italy as a whole.

CDP intends to use the proceeds of the bond to finance concrete initiatives which may include, among others:

  • Helping corporates, mainly SMEs, accessing banking and financial services, also through direct lending
  • Providing Local Authorities with financial support in their efforts related to healthcare, social and economic measures
  • Financing the construction, development, maintenance or renovation of healthcare facilities, medical equipment and technologies for the improvement and protection of public health

Societe Generale is mobilized to taking an active role, backing its clients in their commitments towards the environment and their communities. In this context, and in the framework of a longstanding relation with CDP, Societe Generale acted as Joint Lead Manager and Joint Bookrunners for this transaction, which is going to have a decisive role for the Italian recovery.

«  CDP is the first issuer of a Social Bond to support the Italian economy – one of the economies most affected by the pandemic – to recover and grow. This is also the first Covid-19 Social Response bond ever issued by a European National Promotional Institute. It confirms the strategic role Cassa Depositi e Prestiti plays in the support of enterprises and public administrations in Italy. We at Societe Generale are very proud as professionals and citizens to have assisted CDP in this very important endeavour.  »

Michele Cortese
Head of Debt Capital Markets in Italy