Obligation 1.38 29% ( IT0005328684 ) en JPY

Société émettrice 1.38
Prix sur le marché 100 %  ⇌ 
Pays  Italie
Code ISIN  IT0005328684 ( en JPY )
Coupon 29% par an ( paiement annuel )
Echéance 29/03/2038 - Obligation échue



Prospectus brochure de l'obligation 1.38 IT0005328684 en JPY 29%, échue


Montant Minimal /
Montant de l'émission /
Description détaillée L'Obligation émise par 1.38 ( Italie ) , en JPY, avec le code ISIN IT0005328684, paye un coupon de 29% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le 29/03/2038







Base Prospectus dated 12 May 2020

Cassa depositi e prestiti S.p.A.
(incorporated with limited liability in the Republic of Italy)
Euro 15,000,000,000
Debt Issuance Programme
Under the Debt Issuance Programme (the "Programme") described in this base prospectus (the "Base Prospectus"), which constitutes a base prospectus for the purposes of Article
8 of Regulation (EU) No. 2017/1129 of 14 June 2017 (the "Prospectus Regulation"), Cassa depositi e prestiti S.p.A. (the "Issuer" or "CDP"), subject to compliance with all relevant
laws, regulations and directives, may from time to time issue Euro Medium Term Notes (the "Notes"). The aggregate nominal amount of the Notes outstanding will not at any time
exceed Euro 15,000,000,000 (or its equivalent in other currencies). The maximum aggregate principal amount of Notes which may be outstanding at any one time under the
Programme may be increased from time to time, subject to compliance with the relevant provisions of the Dealer Agreement as defined under "Subscription and Sale".
The Notes issued under this Programme may be issued in such denominations as may be agreed between the Issuer and the relevant Dealer(s) (as defined under "Description of the
Programme") save that the minimum denomination of each Note will be Euro 100,000 (or, if the Notes are denominated in a currency other than Euro, the equivalent amount in such
currency). The Notes may be issued on a continuing basis to one or more of the Dealers specified hereunder and any additional Dealer appointed under the Programme from time to
time by the Issuer (each a Dealer and together the Dealers), which appointment may be for a specific issue or on an ongoing basis. References in this Base Prospectus to the
relevant Dealer shall, in the case of an issue of Notes being (or intended to be) subscribed by more than one Dealer, be to all Dealers agreeing to subscribe such Notes.
This Base Prospectus has been approved by the Luxembourg Commission de Surveillance du Secteur Financier (the "CSSF"), which is the Luxembourg competent authority under
the Prospectus Regulation, as a base prospectus issued in compliance with the Prospectus Regulation for the purpose of giving information with regard to the issue of Notes issued
under the Programme described in this Base Prospectus during the period of twelve months after the date hereof. The CSSF has only approved the Base Prospectus as meeting the
standards of completeness, comprehensibility and consistency imposed by the Prospectus Regulation. Such an approval should not be considered as an endorsement of the Issuer
nor as an endorsement of the quality of any Notes that are the subject of this Base Prospectus and investors should make their own assessment as to the suitability of investing in
any Notes. This Base Prospectus is valid until 12 May 2021, which is a period of twelve months from the date of approval. Applications have been made for such Notes to be
admitted during the period of twelve months after the date hereof to listing on the official list and to trading on the regulated market of the Luxembourg Stock Exchange. The
regulated market of the Luxembourg Stock Exchange is a regulated market for the purposes of Directive 2014/65/EU on markets in financial instruments. References in this Base
Prospectus to Notes being "listed" (and all related references) shall mean that such Notes are intended to be admitted to trading on the Luxembourg Stock Exchange's regulated
market and have been admitted to the Official List of the Luxembourg Stock Exchange. The Programme also permits Notes to be issued on the basis that they will not be admitted to
listing, trading and/or quotation by any listing authority, stock exchange and/or quotation system, or to be issued on the basis that they will be admitted to listing, trading and/or
quotation by such other or further stock exchanges, markets and/or quotation systems as may be agreed between the Issuer and the relevant Dealer.
Notes will be issued by the Issuer to raise funds for its general funding purposes or, if so specified in the applicable Final Terms, for financing or refinancing green, social or
sustainable projects, as the case may be, in accordance with the principles set out by the International Capital Market Association ("ICMA") (respectively, the Green Bond Principles
("GBP"), the Social Bond Principles ("SBP") or the Sustainability Bond Guidelines ("SBG")). The Notes will be issued in series (each, a "Series") and each Series may be issued in
one or more tranches (each, a "Tranche"). The terms of each Series will be set forth in the relevant Final Terms prepared in relation thereto in accordance with the provisions of this
Base Prospectus.
An investment in Notes issued under this Programme involves certain risks. The principal risk factors that may affect the abilities of the Issuer to fulfil its obligations
under the Notes are discussed under "Risk Factors" below.
Each Tranche of Notes will be issued on the terms set out herein under "Terms and Conditions of the Notes" (the "Conditions") as completed by a document specific to such
Tranche called final terms (the "Final Terms").
The Notes will be held in dematerialised form on behalf of the beneficial owners, until redemption or cancellation thereof, by Monte Titoli S.p.A. with registered office and principal
place of business at Piazza degli Affari 6, 20123 Milan, Italy ("Monte Titoli"), for the account of the relevant Monte Titoli Account Holders. The expression "Monte Titoli Account
Holders" means any authorised financial intermediary institution entitled to hold accounts on behalf of their customers with Monte Titoli and includes any depository banks appointed
by Euroclear Bank SA/NV as operator of the Euroclear System ("Euroclear") and Clearstream Banking, société anonyme, Luxembourg ("Clearstream, Luxembourg"). The Notes
have been accepted for clearance by Monte Titoli. The Notes will at all times be held in book entry form and title to the Notes will be evidenced by book entries pursuant to the
relevant provisions of Italian Legislative Decree dated 24 February 1998, No. 58, as subsequently amended and supplemented ("Legislative Decree No. 58") and in accordance with
CONSOB and Bank of Italy Joined Regulation dated 13 August 2018, as subsequently amended and supplemented ("CONSOB and Bank of Italy Regulation"). The Noteholders
may not require physical delivery of the Notes. However, the Noteholders may ask the relevant intermediaries for certification pursuant to Article 83-quinquies and 83-sexies of
Legislative Decree No. 58.
The Programme is, as of the date of this Base Prospectus, rated BBB- by Fitch Ratings Limited ("Fitch Ratings"), BBB by S&P Global Ratings Europe Limited ("S&P") and BBB+ by
Scope Ratings GmbH ("Scope"). Each of Fitch Ratings, S&P and Scope is established in the EEA or the United Kingdom and registered under Regulation (EC) No. 1060/2009, as
amended (the "CRA Regulation"), and is included in the list of registered credit rating agencies published on the website of the European Securities and Markets Authority at
http://www.esma.europa.eu/page/List-registered-and-certified-CRAs. A rating is not a recommendation to buy, sell or hold securities and may be subject to suspension,
change or withdrawal at any time by the assigning rating agency.
Product Classification pursuant to Section 309B of the Securities and Futures Act (Chapter 289) of Singapore, as modified or amended from time to time (the "SFA")
The Final Terms in respect of any Notes may include a legend entitled "Singapore Securities and Futures Act Product Classification" which will state the product classification of the
Notes pursuant to section 309(B)(1) of the SFA. The Issuer will make a determination and provide the appropriate written notification to "relevant persons" in relation to each issue
about the classification of the Notes being offered for purposes of section 309B(1)(a) and section 309B(1)(c) of the SFA.
Joint Arrangers
Cassa depositi e prestiti S.p.A.
Barclays
Dealers
Banca IMI
Barclays
BNP PARIBAS
BofA Securities
Citigroup
Commerzbank
Crédit Agricole CIB
Credit Suisse
Deutsche Bank
HSBC
J.P. Morgan
Mediobanca
Morgan Stanley
MPS Capital Services
Nomura
Société Générale Corporate & Investment Banking
UBS Investment Bank
UniCredit Bank
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TABLE OF CONTENTS
IMPORTANT NOTICES ............................................................................................. 2
RISK FACTORS ........................................................................................................ 8
DESCRIPTION OF THE PROGRAMME .................................................................. 30
DOCUMENTS INCORPORATED BY REFERENCE ............................................... 37
SUPPLEMENT TO THE BASE PROSPECTUS ...................................................... 42
TERMS AND CONDITIONS OF THE NOTES ......................................................... 43
DESCRIPTION OF CASSA DEPOSITI E PRESTITI S.P.A. .................................... 91
SELECTED FINANCIAL INFORMATION RELATING TO CDP ............................ 152
SELECTED FINANCIAL INFORMATION RELATING TO CDP GROUP .............. 153
TAXATION ............................................................................................................. 154
SUBSCRIPTION AND SALE ................................................................................. 168
GENERAL INFORMATION ................................................................................... 174

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IMPORTANT NOTICES
Responsibility for this Base Prospectus
The Issuer accepts responsibility for the information contained in this Base
Prospectus and the Final Terms for each Tranche of Notes issued under the
Programme and declares that, to the best of its knowledge, the information
contained in this Base Prospectus is, in accordance with the facts and the Base
Prospectus makes no omission likely to affect its import.
Final Terms
Each Tranche (as defined herein) of Notes will be issued on the terms set out herein
under "Terms and Conditions of the Notes" as completed by the Final Terms.
Other relevant information
This Base Prospectus must be read and construed together with any supplements
hereto and with any information incorporated by reference herein (see "Documents
Incorporated by Reference" below) and, in relation to any Tranche of Notes, must be
read and construed together with the relevant Final Terms.
Neither this Base Prospectus nor any other information supplied in connection with
the Programme or any Notes (a) is intended to provide the basis of any credit or
other evaluation or (b) should be considered as a recommendation by the Issuer or
any of the Dealers that any recipient of this Base Prospectus or any other
information supplied in connection with the Programme or any Notes should
purchase any Notes. Each Investor contemplating purchasing any Notes should
make its own independent investigation of the financial condition and affairs, and its
own appraisal of the creditworthiness, of the Issuer. Neither this Base Prospectus
nor any other information supplied in connection with the Programme or the issue of
any Notes constitutes an offer or invitation by or on behalf of the Issuer, any of the
Dealers to any person to subscribe for or to purchase any Notes.
The Issuer has confirmed to the Dealers named under "Subscription and Sale" below
that this Base Prospectus (including for this purpose, each relevant Final Terms)
contains all information which is (in the context of the Programme, the issue, offering
and sale of the Notes) material; that such information is true and accurate in all
material respects and is not misleading in any material respect; that any opinions,
predictions or intentions expressed herein are honestly held or made and are not
misleading in any material respect; that this Base Prospectus does not omit to state
any material fact necessary to make such information, opinions, predictions or
intentions (in the context of the Programme, the issue, offering and sale of the
Notes) not misleading in any material respect; and that all proper enquiries have
been made to verify the foregoing.
Legality of purchase
Neither the Issuer, the Dealers, nor any of their respective affiliates has or assumes
responsibility for the lawfulness of the acquisition of the Notes by a prospective
investor in the Notes, whether under the laws of the jurisdiction of its incorporation or
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the jurisdiction in which it operates (if different), or for compliance by that prospective
investor with any law, regulation or regulatory policy applicable to it.
Unauthorised information
No person has been authorised to give any information or to make any
representation not contained in or not consistent with this Base Prospectus or any
other document entered into in relation to the Programme or any information
supplied by the Issuer or such other information as is in the public domain and, if
given or made, such information or representation should not be relied upon as
having been authorised by the Issuer or any Dealer.
Neither the Dealers nor any of their respective affiliates have authorised the whole or
any part of this Base Prospectus and none of them makes any representation or
warranty or accepts any responsibility as to the accuracy or completeness of the
information contained in this Base Prospectus or any responsibility for the acts or
omissions of the Issuer or any other person (other than the relevant Dealer) in
connection with the issue and offering of the Notes. Neither the delivery of this Base
Prospectus or any Final Terms nor the offering, sale or delivery of any Note shall, in
any circumstances, create any implication that the information contained in this Base
Prospectus is true subsequent to the date hereof or the date upon which this Base
Prospectus has been most recently supplemented or that there has been no adverse
change, or any event reasonably likely to involve any adverse change, in the
prospects or financial or trading position of the Issuer since the date thereof or, if
later, the date upon which this Base Prospectus has been most recently amended or
supplemented or that any other information supplied in connection with the
Programme is correct at any time subsequent to the date on which it is supplied or, if
different, the date indicated in the document containing the same.
Restrictions on distribution
This Base Prospectus does not constitute an offer to sell or the solicitation of an offer
to buy any Notes in any jurisdiction to any person to whom it is unlawful to make the
offer or solicitation in such jurisdiction. The distribution of this Base Prospectus and
any Final Terms and the offering, sale and delivery of the Notes in certain
jurisdictions may be restricted by law. The Issuer and the Dealers do not represent
that this Base Prospectus may be lawfully distributed, or that any Notes may be
lawfully offered, in compliance with any applicable registration or other requirements
in any such jurisdiction, or pursuant to an exemption available thereunder, or
assume any responsibility for facilitating any such distribution or offering. In
particular, no action has been taken by the Issuer or the Dealers which is intended to
permit a public offering of any Notes or distribution of this Base Prospectus in any
jurisdiction where action for that purpose is required. Accordingly, no Notes may be
offered or sold, directly or indirectly, and neither this Base Prospectus nor any
advertisement or other offering material may be distributed or published in any
jurisdiction, except under circumstances that will result in compliance with any
applicable laws and regulations. Persons into whose possession this Base
Prospectus or any Final Terms comes are required by the Issuer and the Dealers to
inform themselves about and to observe any such restrictions. For a description of
certain restrictions on offers, sales and deliveries of Notes and on the distribution of
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this Base Prospectus or any Final Terms and other offering material relating to the
Notes, see "Subscription and Sale".
The Notes have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "Securities Act"), or with any securities
regulatory authority of any state or other jurisdiction of the United States and may not
be offered or sold within the United States or to, or for the account or benefit of, U.S.
persons except in certain transactions exempt from the registration requirements of
the Securities Act. Terms used in this paragraph have the meanings given to them
by Regulation S under the Securities Act.
Neither this Base Prospectus or any supplement thereto nor any Final Terms (or any
part thereof) constitutes an offer or an invitation to subscribe for or purchase any
Notes and should not be considered as a recommendation by the Issuer, the Dealers
or any of them that any recipient of this Base Prospectus or any Final Terms should
subscribe for or purchase any Notes. Each recipient of this Base Prospectus or any
Final Terms shall be taken to have made its own investigation and appraisal of the
condition (financial or otherwise) of the Issuer.
Product Governance under Directive 2014/65/EU (as amended)
A determination will be made in relation to each issue about whether, for the purpose
of the MiFID Product Governance rules under EU Delegated Directive 2017/593 (the
"MiFID Product Governance Rules"), any Dealer subscribing for any Notes is a
manufacturer in respect of such Notes, but otherwise neither the Joint Arrangers nor
the Dealers nor any of their respective affiliates will be a manufacturer for the
purpose of the MIFID Product Governance Rules.
The Final Terms in respect of any Notes will include a legend entitled "MiFID II
Product Governance" which will outline the target market assessment in respect of
the Notes and which channels for distribution of the Notes are appropriate. Any
person subsequently offering, selling or recommending the Notes (a "distributor")
should take into consideration the target market assessment; however, a distributor
subject to Directive 2014/65/EU (as amended, "MiFID II") is responsible for
undertaking its own target market assessment in respect of the Notes (by either
adopting or refining the target market assessment) and determining appropriate
distribution channels.
IMPORTANT ­ EEA AND UK RETAIL INVESTORS The Notes are not intended to
be offered, sold or otherwise made available to and should not be offered, sold or
otherwise made available to any retail investor in the European Economic Area
("EEA") or in the United Kingdom. For these purposes, a retail investor means a
person who is one (or more) of: (i) a retail client as defined in point (11) of Article
4(1) of MiFID II; or (ii) a customer within the meaning of Directive (EU) 2016/97
("Insurance Distribution Directive"), where that customer would not qualify as a
professional client as defined in point (10) of Article 4(1) of MiFID II. Consequently
no key information document required by Regulation (EU) No 1286/2014 (the
"PRIIPs Regulation") for offering or selling the Notes or otherwise making them
available to retail investors in the EEA or in the United Kingdom has been prepared
and therefore offering or selling the Notes or otherwise making them available to any
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retail investor in the EEA or in the United Kingdom may be unlawful under the
PRIIPs Regulation.
Benchmark Regulation
Interest and/or other amounts payable under the Notes may be calculated by
reference to certain reference rates. Any such reference rate may constitute a
benchmark for the purposes of Regulation (EU) 2016/1011 (the "Benchmark
Regulation"). If any such reference rate does constitute such a benchmark, the Final
Terms will indicate whether or not the benchmark is provided by an administrator
included in the register of administrators and benchmarks established and
maintained by ESMA pursuant to Article 36 (Register of administrators and
benchmarks) of the Benchmark Regulation. Transitional provisions in the Benchmark
Regulation may have the result that the administrator of a particular benchmark is
not required to appear in the register of administrators and benchmarks at the date
of the Final Terms. The registration status of any administrator under the Benchmark
Regulation is a matter of public record and, save where required by applicable law,
the Issuer does not intend to update the Final Terms to reflect any change in the
registration status of the administrator.
Programme limit
The maximum aggregate principal amount of Notes outstanding at any one time
under the Programme will not exceed Euro 15,000,000,000 (and for this purpose,
any Notes denominated in another currency shall be converted into Euro at the date
of the agreement to issue such Notes in accordance with the provisions of the Dealer
Agreement). The maximum aggregate principal amount of Notes which may be
outstanding at any one time under the Programme may be increased from time to
time, subject to compliance with the relevant provisions of the Dealer Agreement, as
defined under "Subscription and Sale". In the event of increase of the original
maximum amount of the Programme as set out herein, the Issuer shall prepare a
supplement to the Base Prospectus.
Ratings
Tranches of Notes issued under the Programme will be rated or unrated. Where a
Tranche of Notes is rated, such rating will not necessarily be the same as the
rating(s) described on the cover page of this Base Prospectus or the rating(s)
assigned to Notes already issued. Where a Tranche of Notes is rated, the applicable
rating(s) will be specified in the relevant Final Terms. Whether or not each credit
rating applied for in relation to a relevant Tranche of Notes will be (1) issued by a
credit rating agency established in the EEA or in the United Kingdom and registered
under the CRA Regulation, or (2) issued by a credit rating agency which is not
established in the EEA or in the United Kingdom but will be endorsed by a CRA
which is established in the EEA or in the United Kingdom and registered under the
CRA Regulation or (3) issued by a credit rating agency which is not established in
the EEA or in the United Kingdom but which is certified under the CRA Regulation
will be disclosed in the Final Terms.
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Presentation of information
Unless otherwise indicated, the financial information in this Base Prospectus relating
to the Issuer has been derived from (i) the audited non-consolidated annual financial
statements of the Issuer for the financial years ended 31 December 2019 and 31
December 2018 and (ii) the audited consolidated annual financial statements of the
Issuer for the financial years ended 31 December 2019 and 31 December 2018
(together, the "Financial Statements").
The Issuer's financial year ends on 31 December, and references in this Base
Prospectus to any specific year are to the 12-month period ended on 31 December
of such year. The Financial Statements have been prepared in accordance with the
International Financial Reporting Standards (IFRSs) issued by the International
Accounting Standards Board (IASB), including the SIC and IFRIC interpretations,
endorsed by the European Union, as provided by Regulation (EC) No. 1606 of 19
July 2002, published in the Official Journal of the European Union L. 243 on 11
September 2002.
Certain definitions
Capitalised terms which are used but not defined in any particular section of this
Base Prospectus will have the meaning attributed to them in "Terms and Conditions
of the Notes" or any other section of this Base Prospectus. In addition, the following
terms as used in this Base Prospectus have the meanings defined below.
In this Base Prospectus, unless otherwise specified, references to a "Member State"
are to a Member State of the European Economic Area, references to "Euro" "EUR"
or "" are to the single currency introduced at the start of the third stage of the
European Economic and Monetary Union pursuant to the Treaty establishing the
European Community, as amended, and references to "£" or "Sterling" are to the
currency of the United Kingdom.
References to a billion are to a thousand million.
Certain figures included in this Base Prospectus have been subject to rounding
adjustments; accordingly, figures shown for the same category presented in different
tables may vary slightly and figures shown as totals in certain tables may not be an
arithmetic aggregation of the figures which precede them.
Alternative Performance Measures
This Base Prospectus does not contain any financial measure that is not recognised
as a measure of performance under IFRS or Italian GAAP, otherwise known as
"Alternative Performance Measures".
Stabilisation
In connection with the issue of any Tranche of Notes, the Dealer or Dealers (if
any) named as the Stabilising Manager(s) (or persons acting on behalf of any
Stabilising Manager(s)) in the applicable Final Terms may over allot Notes or
effect transactions with a view to supporting the market price of the Notes at a
level higher than that which might otherwise prevail. However, stabilisation
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may not necessarily occur. Any stabilisation action may begin on or after the
date on which adequate public disclosure of the terms of the offer of the
relevant Tranche of Notes is made and, if begun, may cease at any time, but it
must end no later than the earlier of 30 days after the issue date of the relevant
Tranche of Notes and 60 days after the date of the allotment of the relevant
Tranche of Notes. Any stabilisation action or over-allotment must be
conducted by the relevant Stabilising Manager(s) (or person(s) acting on
behalf of any Stabilising Manager(s)) in accordance with all applicable laws
and rules.
FORWARD-LOOKING STATEMENTS
This Base Prospectus contains certain forward-looking statements. The words
"anticipate", "believe", "expect", "plan", "intend", "targets", "aims", "estimate",
"project", "will", "would", "may", "could", "continue" and similar expressions are
intended to identify forward-looking statements. All statements other than statements
of historical fact included in this Base Prospectus, including, without limitation, those
regarding the financial position, business strategy, management plans and
objectives for future operations of the Issuer are forward-looking statements. These
forward-looking statements involve known and unknown risks, uncertainties and
other factors, which may cause our actual results, performance or achievements, or
industry results, to be materially different from those expressed or implied by these
forward-looking statements. These forward-looking statements are based on
numerous assumptions regarding our present and future business strategies and the
environment in which we expect to operate in the future. Factors that could cause
actual results, performance or achievements to differ materially include, but are not
limited to, those discussed under "Risk Factors". Any forward-looking statements
made by or on behalf of the Issuer speak only as at the date they are made. The
Issuer does not undertake to update forward-looking statements to reflect any
changes in their expectations with regard thereto or any changes in events,
conditions or circumstances on which any such statement is based.
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RISK FACTORS
The following are the risk factors relating to the Issuer and Notes to be issued under
the Programme which prospective purchasers of Notes should consider prior to
making an investment decision. Prospective purchasers of Notes should also read
the information set out elsewhere in this Base Prospectus. Words and expressions
defined in the "Terms and Conditions of the Notes" (the "Conditions") below or
elsewhere in this Base Prospectus have the same meanings in this section.
In purchasing Notes, investors assume the risk that the Issuer may be unable to
make all payments due in respect of the Notes. There are a wide range of factors
which, individually or together, could result in the Issuer becoming unable to make all
payments due. It is not possible to identify all such factors or to determine which
factors are most likely to occur, as the Issuer may not be aware of all relevant
factors, and certain factors which it currently deem not to be material may become
material as a result of the occurrence of events outside the Issuer's control. The
Issuer has identified in this Base Prospectus a number of factors that could
materially adversely affect its businesses and ability to make payments due.
In addition, factors which are material for the purpose of assessing the market risks
associated with Notes issued under the Programme are also described below.
Prospective investors should also read the detailed information set out elsewhere in
this Base Prospectus and reach their own views prior to making any investment
decision.
The risks below have been classified into the following categories:
1.
Risks relating to the Issuer's financial position;
2.
Risks relating to the Issuer's business activity and industry; and
3.
Risk relating to the Notes.
1.
Risks relating to the Issuer's financial position
Risk factors relating to the macroeconomic environment
CDP and its subsidiaries (the "CDP Group") carry out their business activities mainly
in Italy with public entities and, to a lesser extent, private entities, including banking
groups operating in Italy. As such, the CDP Group's business is affected by the
economic conditions affecting Italy, which, at the same time, are connected to
European and global economic conditions.
The current international macroeconomic environment, and in particular the
macroeconomic environment in Europe, is characterised by significant uncertainty
relating to: (i) economic trends relating to recovery expectations and consolidation of
the growth dynamics of the economies of countries such as the United States and
China, which have been subject to substantial growth also in recent years, (ii) future
developments in the monetary policy of the European Central Bank ("ECB") in the
Eurozone and of the Federal Reserve in the dollar-zone, as well as the policies
implemented by the various countries to encourage competitive devaluation of their
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currency, (iii) the sustainability of sovereign debt of some countries and related
tensions that are more or less recurring on financial markets, and (iv) recent
developments in connection with structure of the future relationship between the UK
and the EU further to the withdrawal of the UK from the EU, as determined at the
end of a transition period that will last until 31 December 2020.
As regards the impact of the recent COVID-19 pandemic, it is not yet possible to
reliably estimate the full extent of the economic consequences of the outbreak; it is
however likely to take a heavy and protracted toll on economic growth and financial
market conditions globally.
The risks for the euro area economy include a weakening external environment amid
prolonged or/and escalating trade restrictions and substantial economic
consequences as a result of a recurrence of Eurozone sovereign debt and banking
stress triggered, inter alia, by political and fiscal uncertainty, the challenging
low/negative interest rate operating environment, as well as a weaker than expected
performance of the euro area economy. Adverse developments could also be
triggered by a sharper than expected slowdown of the Chinese economy due to the
economic impact of COVID-19. More specifically, on the basis of publicly available
information and of market conditions as at the date hereof, at least two industrial
sectors to which CDP is directly exposed, namely the oil and gas and the cruise
sectors, have been and will continue to be extensively affected. These factors,
among other things, may restrict the European economic recovery, with a
corresponding adverse effect on the CDP Group's business, results of operations
and financial condition.
-
The sovereign debt crisis
The sovereign debt crisis has raised concerns about the long-term sustainability of
the European Monetary Union and the ordinary activity of many commercial and
investment banks as well as insurance companies.
Persistent market tensions might negatively affect the funding costs and economic
outlook of some euro member countries, including Italy. This, together with the risk
that some countries (even if not very significant in terms of gross domestic product)
might leave the euro area, would have a material and negative impact on Italy's
sovereign debt and economic conditions and, therefore, on CDP and its operations.
Since the beginning of the sovereign debt crisis in May 2010, credit quality has
generally declined, as reflected by downgrades suffered by several countries in the
Eurozone, including Italy. Any deterioration of the Italian economy would have a
material adverse effect on CDP, in light of the CDP Group's significant exposure to
the Italian economy. See also "Risks relating to CDP's relationship with the Republic
of Italy" below.
Despite the several initiatives of supranational organisations to deal with the
heightened sovereign debt crisis in the euro area, global markets remain
characterised by high volatility. Any further acceleration of the European sovereign
debt crisis could likely significantly affect, among other things, the recoverability and
quality of the sovereign debt securities held by CDP.
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Document Outline