Italian non-listed companies have struggled to find efficient structures for corporate bond issuances. The Italian government has taken 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 Law Decree no. 83 of June 22, 2012 on “Urgent Measures for Growth of the Country” (the “Decree”). Article 32 of the Decree resolves most of the tax and corporate issues that have obstructed access to, or increased the cost for, corporate bonds for Non-Listed Companies.

The Decree became effective on June 26, 2012 (the date of its publication in the Italian Official Gazette). In order to remain effective, the Italian Parliament will need to convert the Decree into law within 60 days (i.e. August 25, 2012) of publication in the Italian Official Gazette (and may amend the law during such process). This Client Insight will be updated to reflect any material change upon its conversion into law.

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