Sideralba, a Campania-based company operating in the steel sector, has finalized the issue of its first 12 million minibond, backed by SACE’s Italian Guarantee and listed on the ExtraMOT PRO 3 segment of the Italian Stock Exchange. The operation, with Banca Finint in the role of arranger and underwritten by Cassa Depositi e Prestiti, Mediocredito Centrale and Banca di Credito Popolare, will allow the Campania company to finance growth and investments in production plants.
An innovative operation
The 2021-2024 industrial plan of the Campania company provides for the consolidation of market shares in Europe and Italy. The transaction, structured by Banca Finint, is one of the first of this type and saw the involvement of investors such as Cassa Depositi e Prestiti (5 million), Mediocredito Centrale (5 million) and Banca di Credito Popolare (2 million). The operation has a duration of 6 years. Banca Finint performed the role of arranger of the SACE transaction and guarantee as well as having covered the roles of SACE Agent, Paying Agent and Issuing Agent of the transaction. The NCTM law firm acted as deal legal counsel and legal advisor to bondholders through two dedicated teams.
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In the industrial plan, investments in Italy
Sideralba, which closed its 2020 financial statements with a production value of approximately 225 million and an ebitda margin of 10%, will use the proceeds deriving from the issue to finance the 2021-2024 Business Plan which envisages significant investments in the group’s localized production plants in Italy, as well as supporting the growth in working capital as a result of the expected increase in revenues and production volumes. Founded in 1993 by Tommaso Rapullino, Sideralba was born as a family business controlled by the Rapullino family since its origins. Today it is led by Luigi Rapullino. It is one of the main European players in the steel sector, while maintaining the same spirit of its foundation. In the last 5 years, the group has experienced exponential growth from 112.5 million in turnover in 2016 to 215.4 million in 2020. In November 2017, the company took over the Tunisian assets of Ilva under extraordinary administration (today Sideralba Maghreb), winning an international tender.
First issue of minibonds to be followed by others
Daniele Palombi, Chief Financial Officer of Sideralba said: “In a historical moment perhaps among the most difficult and complex in the world in our recent history, I am proud to be able to announce that our group has managed to complete an important operation financial support in support of a growth plan planned for the next few years which we believe is ambitious. Thanks to this first minibond operation, which represents a starting point for the evolution of the financial management of the company, our group will be able to benefit from greater diversification of forms of financing as well as develop a corporate brand in the capital market that will increase the company’s visibility with investors and lenders. The possibility now opens to develop and give continuity to a series of projects that are fundamental for our international consolidation and growth ».
Sideralba is a steel company active for about 30 years on the Italian and international scene. It produces and markets 600,000 tons per year of steel products including coils, pipes, strips, sheets from coils and open profiles on a worldwide scale. Through the acquisition of the ILVA Group in Tunisia, it has extended its production to the entire steel cycle for the production of cold and coated coils. Belonging to the Rapullino Group, Sideralba employs 600 people in 4 production plants in Italy and Tunisia and is the leader in Italy in the processing of galvanized coil for the construction and agricultural sector.