Cdp speeds up on Chinese SMEs support

April 28, 2019

Abstract : Cdp speeds up to support Italian companies in China. Cdp has called a tender to entrust legal consultancy services in the financing operations of Italian companies in China or of Chinese companies controlled by Italian companies.

MILAN, Apr 25 (Class Editori) -- Cdp speeds up to support Italian companies in China. Cdp has called a tender to entrust legal consultancy services in the financing operations of Italian companies in China or of Chinese companies controlled by Italian companies. The procedure is already at an advanced stage. Among the competitors are four law firms, Bird & Bird, Ashurst, Clifford Chance and the law and tax firm Giacomo Albano. Secondly, the Linklaters law firm was excluded. The contract will last 9 months, with a tender base of 156,000 euros.

Currently, 600 million euros would be made available to Italian companies through short-term revolving lines of credit with the partnership of Unicredit, Intesa Sanpaolo and Monte dei Paschi di Siena. To encourage internationalization, Cdp will also provide subsidised loans at a rate equal to 10% of the EU reference rate. An additional service regards the competitive financing made available to Chinese customers for the purchase of products and services offered by Italian companies.

The group led by Fabrizio Palermo is awaiting approval for the plan which provides the issue of 5 billion yuan (about 650 million euros) in Panda bonds, or rather bonds in renminbi, to be placed to Chinese investors, whose revenues will support the financing of SMEs in China and a protocol with Snam and the Silk Road Fund to carry out joint operations in third countries.

The operation that is taking shape would allow Cdp to follow one of the objectives envisaged by protocols signed with Intesa Sanpaolo last August and with Unicredit on February 21. The main objective is to encourage the internationalization of SMEs, also through renminbi instruments. These projects fall under Cdp's 2019-2021 business plan for internationalization and export growth, presented last December and making 83 billion euros available to companies.

(Source:Class Editori)

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