Banca Sistema restructures €1 billion tax receivables securitization

Client(s) Banca Sistema S.p.A.

Jones Day assisted Banca Sistema, as drafting counsel, in the restructuring of the securitization of tax receivables, carried out through the entry of BNP Paribas as a senior investor.

The securitization transaction, initially finalized in April 2020, involves the sale on a revolving basis of tax receivables from assignors, customers of Banca Sistema, for a maximum total initial amount of €1.6 billion and residual amount of about €1 billion. BNP Paribas will finance the transaction up to €150 million and initial term of 24 months, allowing Banca Sistema to diversify its sources of funding in the institutional market and lengthen the term of this specific source of funding through a more efficient securitization structure.

Banca Sistema, in addition to its role as arranger, serves as sponsor, servicer, program and administration agent, account bank, and liquidity facility provider.

Banca Finint also participated in the transaction as corporate servicer, calculation agent, representative of the noteholders, paying agent, and account bank.