Alantra advises brumbrum in the first securitisation of movable registered assets in Italy to date

Jun 2021

Securitisation

Value €65 million

Milan – Alantra, the global investment banking and asset management specialist, is pleased to announce that its client brumbrum S.p.A. (“brumbrum”), an Italian technology company operating in the automotive segment, has completed the first securitisation of movable registered assets in Italy to date, pursuant to the new article 7.2 of the Italian securitisation law as amended in 2019. Alantra has acted as sole financial advisor to brumbrum to structure this innovative transaction.

brumbrum is a technology company established in 2016, an innovator in the automotive used cars market and car as a service or long-term rental business (“CaaS”). Leveraging on an optimal combination of in-house capabilities, proprietary technology, and strong multi-channel marketing promotion, brumbrum has quickly increased its presence in Italy and has been placing the roots for a planned European expansion.

Despite the crisis in the automotive market linked to the impact of the Covid-19 pandemic, brumbrum’s digital distribution model has proven to be successful. The transaction, for a total consideration of 65m€, aims at providing dedicated finance to develop brumbrums’s ambitious growth of its CaaS offering for individuals, and at the same time to strengthen and extend the financial flexibility available to brumbrum for the implementation of its broader strategic plan.

This is a unique transaction in Italy and among the first in Europe, made possible by a recent regulatory change (Law 28 June 2019, n.58) aimed at creating innovation through the securitisation of income deriving from movable registered assets and real estate. The transaction was conducted through the establishment of a securitisation vehicle whose senior securities were underwritten by investment vehicles managed by Oaktree Capital Management and by P&G Structured Credit Opportunities Fund, while the junior securities were underwritten by brumbrum. brumbrum will also play the role of asset manager for the transaction.

According to Renato Limuti, Managing Director in Alantra Credit Portfolio Advisory (CPA), “this transaction is unique and serves as a reference point for the structured finance market in Italy. Alantra is pleased to have assisted brumbrum in this pioneering transaction that will support the commercial development of its offering with a long-term rental product for private individuals, a rising global trend for new mobility models”.