Information on the Target

Soleto S.p.A. has been a key player in the infrastructure and telecommunications sector since 1992, specializing in the design, installation, maintenance, and post-sales support of specialized systems and fiber optic networks. The company has demonstrated strong growth with an increase in revenue from €24 million in 2012 to €46 million in 2015, and it projects a further increase to €51 million for 2016.

In terms of profitability, Soleto achieved an EBITDA margin of approximately 9% in 2015, surpassing the sector average. This financial stability positions Soleto favorably within its competitive landscape as it continues to expand its offerings.

Industry Overview in Italy

The Italian telecommunications and infrastructure market is expected to experience significant growth in the coming years, largely driven by government initiatives aimed at closing the digital divide. The Italian government has announced plans to invest €12.3 billion over the next five years to develop broadband and ultra-broadband networks, particularly focusing on fiber optic installations in urban areas.

This governmental push is set against a backdrop of increasing demand for high-speed internet, which is essential for both businesses and consumers in an increasingly digital world. Enhanced connectivity will not only improve individual access but also foster wider economic growth through better services and innovations.

The anticipated growth in this sector not only emphasizes current investments but also attracts new players, reinforcing the competitive dynamics in the market. With several public and private entities poised to invest heavily, the environment reflects a promising landscape for companies like Soleto that are equipped to leverage these developments.

The Rationale Behind the Deal

The recent issuance of a €5 million minibond by Soleto S.p.A. is a strategic move aimed at financing the company's further development and seizing growth opportunities within the expanding market. With the support of Banca Sella, this minibond not only strengthens Soleto's financial footing but also enhances its capacity to undertake projects aligned with Italy's digital transformation goals.

The senior structure and amortizing profile of the minibond, accompanied by its five-year duration, reflect a well-considered financing strategy that balances risk and return for investors, making it an attractive option amidst a positive market outlook.

Information about the Investor

Riello Investimenti Partners SGR, through its private debt fund ‘Impresa Italia’, has taken a significant stake in this minibond, contributing €1 million alongside other prominent institutional investors. Impresa Italia focuses on supporting small and medium-sized enterprises in Italy, thereby playing a pivotal role in the financial ecosystem.

The fund is dedicated to fostering growth within the Italian SMEs, providing not only capital but also strategic guidance to enhance operational efficiency and market reach. The participation of such reputable investors underscores the confidence in Soleto's growth potential and the broader industry landscape.

View of Dealert

In assessing the investment into Soleto through the minibond, it appears to be a prudent decision given the company’s strong growth trajectory and favorable market conditions. The anticipated increase in governmental investment into broadband infrastructure directly aligns with Soleto's service offerings, positioning the company to capture significant market share.

Additionally, Soleto’s solid financial performance, highlighted by its impressive EBITDA margins, suggests that it is well-equipped to manage the demands of expansion while still delivering value to its investors.

However, potential investors should remain vigilant regarding market fluctuations and competitive pressures that could impact Soleto's profits. While the outlook is optimistic, ongoing assessment of market dynamics will be crucial in ensuring continued success.

Overall, this investment not only benefits Soleto S.p.A. but also contributes positively to the overall telecommunications industry in Italy, making it a strategic play for all stakeholders involved.

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