SC Lowy is the new majority shareholder of Credito di Romagna
With this new partner, the bank aims to reinforce its key position in the regional economy, to further empower corporate and retail customers in their banking activities and to expand its investment banking business
Top management has already been strengthened
Credito di Romagna management team and employees in Forlì, Italy
17 April 2018 Forli – Credito di Romagna, one of the reputable banks in the Emilia Romagna region, announces the entry of the new shareholder SC Lowy, an international investment banking and financial group with a presence also in Italy, through the subscription of a capital increase and the injection of other CET 1 instruments, for an overall amount of 50 million euros.
With the subscription of the above-mentioned capital increase and the closing of the transaction, already authorized by the European Central Bank on 12 April 2018, SC Lowy will become the controlling shareholder of the Bank, holding more than 90% of Credito di Romagna. SC Lowy is investing in the Bank through its parent holding company and creating through this strategic investment, a long-term partnership.
Credito di Romagna is based in Emilia Romagna, one of the richest Italian regions, with 11 branches, 125 employees and over 25,000 customers, including 6,000 corporates, with a total customer business (loans and deposits) exceeding 1,2 billion euros as at 31 December 2017.
The injection of new financial resources strengthens the capital structure of Credito di Romagna enabling the bank to develop its commercial banking presence in the region, further supporting corporate and retail customers in their banking activities. Furthermore, the bank aims to improve its efficiency and profitability through the optimization of its branch network.
SC Lowy’s new strategic plan envisages the development of investment banking activities with new business lines dedicated to the management of corporate syndicated loans and illiquid assets, including non-performing credits and special situations.
The bank’s top management team has been strengthened with the hiring at the beginning of the year of new managers with vast experience in the banking and financial industry: Maurizio Barnabé, appointed General Manager of Credito di Romagna, has twenty-five years of experience in retail banking, asset management and insurance, holding senior positions in several Italian banks, including the leading position at BCC Valdostana; Frank Fogiel, former Managing Director at ING, is being appointed Deputy General Manager, bringing more than twenty years of financial and risk management expertise within leading banking institutions; Nicola Guadagni, appointed Head of Investment Banking, comes from Credito Fondiario, where he was in charge of New Deals & Special Projects and has seventeen years of experience in Investment and Commercial Banking.
“The acquisition of Credito di Romagna represents an important step forward in the development of our European platform and for the growth of our business,” said Michel Lowy, SC Lowy CEO. “We are excited to work with the strong network of bank branches operating throughout the Emilia Romagna region. Combined with our credit analysis skills, our network of investment partners and our experience in investment banking, we can help to expand the bank’s business with the offer of new services in Italy. We have reinforced the senior management team of the bank with the hiring of a number of high-profile professionals. The new team will drive the bank into a new direction, respecting its values, supporting the local community and, at the same time, improving the quality of the traditional activity of commercial banking”.
Maurizio Barnabè, General Manager of Credito di Romagna, added: “A new phase has begun for Credito di Romagna thanks to the entry of SC Lowy as the Bank’s shareholder. The bank can now rely on a long-term strategic partner that enables Credito di Romagna to better support its clients with a wide range of products and services dedicated to both corporates and individuals, enhancing our commitment towards the regional economy. We will bolster the identity of the Bank and its competencies by developing an investment banking presence at the national level”.
The investment in Credito di Romagna represents the second deal in the banking sector for SC Lowy, following the acquisition of South Korea’s Cheoun Savings Bank in 2013.
About Credito di Romagna
Founded in 2003 and headquartered in Forlì, (North-East of Italy, Emilia Romagna), Credito di Romagna is the reference bank for local families, self-employed workers and SMEs. Credito di Romagna has 11 branches in main Italian cities: Forlì and Bologna (three and two branches respectively) and one branch each in Rimini, Cesena, Ravenna, Faenza, Lugo and Imola. With 125 employees and over 25,000 clients, including 6,000 corporates, the Bank has 650 million euros of total assets as of December 2017.
About SC Lowy
SC Lowy is an international banking and financial group specialized in fixed income. The firm uses its balance sheet to facilitate primary issuance, secondary trading and investments focused on corporate bonds, loans, trade claims and special situations. Headquartered in Hong Kong, with offices in London, Milan and Seoul, the Group was established in 2009 and prior to the Credito di Romagna acquisition had over 100 employees. In addition to its traditional banking clients, SC Lowy has built a global, institutional client network of over 800 international and regional banks, asset managers, hedge funds, private equity and pension funds, family offices and corporations. SC Lowy has carried out transactions of over 65 billion US dollars since inception, placing itself among the leading operators in fixed income in EMEA and the APAC regions.
For more information:
Cristina Fossati, Luisella Murtas, Noemi Colombo
Tel. (+39) 02/89011300
Tel. (+852) 3405 1300