PA Trade Claims Securitisation
KNG supports corporates in their business dealings with the Italian Public Sector by providing non-recourse securitisation of their Claims resulting from goods and services sold to the Italian Public Administration. We act as a bridge between the Italian Public and Private sector.
The Public Administration (“PA”) is Italy's largest business counterparty to the private sector with annual turnover in excess of EUR 230bn. There is a strong and extensive commercial relationship between the two sectors. The delays in payments by the PA have been, and still are, one of the main issues impacting the efficiency of the Italian economic system.
Based on the experience gained over the years in originating, structuring and managing securitisations of over 200mil Euros of receivables originating from goods and services sold to the Italian Local Authorities, KNG can offer non-recourse purchase of these claims to suppliers to the PA who seek to improve their DSOs, free up cash, release bank lines and, in extreme circumstances, protect themselves against the risk of insolvency due to serious delays in payments. Our purchases are executed though SPVs created under Italian Law 130/1999.
KNG offers a certification service for invoices payable by the Public Administration, through the Credit Certification Platform operated by the Italian Ministry of the Economy and Finance.
Price
The purchase price is calculated based on the credit quality of the debtor and the assignor, market interest rates and the estimated TTR (Time To Recovery).
Documents required for due diligence checks and credit approval
We do require a set list of documents related to the assignor and the underlying invoices
Arrangement
This type of transaction can be rather complex. This is precisely why KNG, thanks to the experience gained over the years and to the skills of its specialized staff, is able to provide full support on any aspect of the securitisation including legal, pricing, structuring/modelling and negotiation of terms.
