LONDON: In a significant move to enhance cash flow for manufacturing and trading companies, SYME, a leading fintech business, has proudly announced the initiation of a €135 million Inventory Monetisation (IM) Securitisation Programme. This strategic agreement involves Société Financière Européenne S.A. (SFE) and a prominent Italian neo banking group.
The programme is set to unfold in multiple tranches, each approximately €35 million, contingent on the inventory turnover rates of the participating client companies. The primary aim is to fund IM transactions for Italian clients within SYME’s pipeline.
Under the terms of the programme:
- The Italian neo banking group will serve as the arranger and, subject to internal approvals, the financier of the senior and a portion of the junior notes through its investment banking division.
- SFE will participate as a co-investor, subscribing to the remaining junior notes.
- SYME will act as the platform provider and inventory servicer for the Stock Companies owned by SFE.
The anticipated returns from the IM Securitisation Programme align with the Open Market IM, with expected revenues ranging from 1-3% of the gross value of the monetised inventories.
The market awaits further updates as the first tranche is deployed, promising more details on the programme’s progress.
Notably, Alessandro Zamboni, CEO of SYME Group, along with other investors, holds a non-controlling interest in SFE. Consequently, the IM Securitisation Programme and the related Platform Agreements are classified as a material related party transaction. The independent Directors of SYME, excluding Zamboni, have endorsed this transaction as equitable and reasonable for the Company and its non-related Shareholders.
SYME advances in fintech with partnerships and innovative monetisation solutions