Italian non-listed companies have struggled to find efficient structures for corporate bond issuances. On June 15, 2012, the Italian government took an important step to facilitate access to the corporate bond market for Italian companies which are not issuers of financial instruments on a Qualified Exchange (as defined below)(“Non-Listed Companies”) by approving a law decree on “Urgent Measures for Growth of the Country” (the “Draft Decree”). Article 32 of the Draft Decree, if approved in its current form, would resolve most of the tax and corporate issues that have obstructed access to, or increased the cost for, corporate bonds for Non-Listed Companies. This Client Insight is based on the Draft Decree; the final decree may differ from the Draft Decree.

This Client Insight will be updated to reflect any material change in the final published decree and its conversion into law. A decree, in order to remain effective, must be converted into law within 60 days of publication in the Italian Official Gazette.

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