By John Ferry
The banks are believed to have jointly arranged a sophisticated investment structure that effectively gives Lazio, the region around and including Rome, a revolving credit facility that is also designed to give creditors security on future payments. Nomura and Mediobanca would not comment on the transaction but the source says investors are being asked to buy a type of three-year variable rate note – a partly paid note structure that will be sold with a commitment to payment but with unknown actual monthly payout amounts. “It’s a type of revolving commitment. You get a limit of how much you will lend or commit over time, and every month you...
