What is it?
The Euregio Minibond Fund is a closed-end mutual fund of the closed-end type that falls into the category of reserved Italian AIFs (Alternative Investment Funds). It was set up to carry out the opportunity offered by the “Development Decree” 83/2012 that introduces the regulations on the so-called mini-bonds, aimed at creating a form of financing complementary to bank credit for unlisted SMEs through the issue of debt securities.
Euregio Minibond was therefore created with the wish to economically support the area of the Trentino-South Tyrol Region through investments in local businesses. The territorial aspect allows the Fund’s managing and institutional asset manager, Euregio Plus SGR, and the arranger and advisor, Prader Bank, to capitalize on the deep knowledge of the issuing companies, their development and innovation capabilities, while representing an opportunity for institutional investors to diversify their assets.
The Fund’s operations began in December 2013 with the achievement of the threshold of 50 million Euro set as “first closing”.
The portfolio is built through a careful policy of risk diversification based on the target company of the investment product sector, duration of the issued financial instrument, attributed creditworthiness, and other aspects related to the actual issue such as the type of offered rate, repayment method, and subscribed amount in order to have an average financial duration of just over 4 years.
In April 2016 the term for subscriptions was closed and the Fund raised approximately 70 million Euros.
Subscription to the “Euregio Minibond” Fund AIF is reserved to the category of “Professional Investors” as indicated by the Legislative Decree no. 58 dated February 24, 1998 (the “Consolidated Law on Financial Intermediation”), Article 6, paragraphs 2-quinquies and 2-sexies. Investors other than “Professional Investors” may also participate in the Fund on condition that they subscribe units for a total amount not less than Euro 500,000 (five hundred thousand).