09/12/2022

Combining logistics and finance: Samag Holding Logistics’ project to support the supply chain

Embedded finance. It appears almost impossible to succeed in making operations of this type in logistics, but we have laid the groundwork for a plan that brings a breath of innovation and recognition of the section’s strategic role in the economy. Even more so if it is necessary to emphasize this.

Let us proceed in chronological order.

After months of planning, we have finally developed a financing program for the companies and suppliers that comprise our supply chain. We will be the first in Italy to incorporate digital business lending services into the offering of a corporate company, which we are. How? Through the establishment of a dedicated fund, to which we have subscribed, that fits into the framework of a 55 million euro securitization program structured by Banca Valsabbina, which also serves as a co-investor.

In addition to Banca Valsabbina, a Brescia-based bank with a strength index higher than the national average, the project includes Opyn, a fintech specializing in lending to companies and offering technology as a service to banks, asset managers, and corporations, Cardo AI, an end-to-end platform for data management, reporting, and analysis in the private debt market, 130 Servicing S.P.A. for the role of master servicer and other management roles, while Banca Finint has served as a paying agent, issuing agent, and representative of securities bearers. Hogan Lovells acted as transaction counsel in the transaction, with a team led by partner Corrado Fiscale.

What is the operation’s perspective?

The operation begins with the identification of the difficulties in obtaining credit for the operating SMEs in logistics. We want to provide them with a credit instrument that facilitates obtaining assistance for circulation and investments, as well as a financing structure that allows them to convey liquidity using an innovative and easily replicable model.

The end result? A tangible support for the virtuous increase of the rows, but above all, a simplicity that has never before made its income in logistics: they will serve only 24 hours in order to obtain the creditworthiness appraisal and to know if the company can access the deep ones.

What does the project entail?

The need stems from the company’s rapid growth over the last three years, which has seen sales triple as a result of an organic and inorganic expansion strategy. We thought we could “exploit” the experience of our own growth because the process of diversification produced such a homogeneous and synergistic offer. Because logistics is a value chain, if we grow, we must be able to grow others.

The operation is proposed to provide consistency to supply chain finance, but it will also contribute to supporting occupational levels, which will be of great assistance to the territory’s businesses. This accomplishment recognizes our commitment to forming virtuous partnerships with companies driven by sustainability. We try to mobilize the country’s resources through digital business lending services by actively involving them in the logistics distance increase.

The logistic-finance combination will produce positive results throughout the supply chain.