Bank Credit and Market-Based Finance for Corporations: The Effects of Minibond Issuances

Abstract

This paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB.

Green finance instruments: Exploring minibonds issuance in Italy

“…From a different perspective, we notice that Ongena et al (2020) are in line with us, especially for their results on the connection between the issuance of minibonds and performance related to the macrocategory growth opportunity.…”

“…Ongena et al (2020) propose an interesting study on behalf of the European Central Bank (ECB). The authors came to interesting conclusions.…”

The Rise of Bond Financing in Europe

“…Becker and Josephson [2016] is an important exception, although their data stops in 2010 and includes only public firms, many outside the Euro Area. We also share some facts with the independent works of Ongena et al [2020] and who study the introduction of minibonds in Italy in 2012. The two approaches are complementary: our broad sample increases external validity, while detailed data from the Italian central bank helps to narrow down the mechanisms at play.…”

“…Moreover, recent deregulation of bond markets have aimed to reduce the cost of bond issuance for smaller firms. For instance, and Ongena et al [2020] study the removal pre-existing limits to the issuance of corporate bonds by unlisted firms in Italy. market.…”

How can SMEs signal their quality and growth orientation to the market? An analysis of the cost of Italian corporate mini‐bonds

“…This circumstance is partly confirmed by Grasso & Pattarin (2019) indicating that the rating of mini‐bonds issuers did not help investors reduce information asymmetries. Ongena et al (2019) studied the effects of mini‐bond issuances on issuers' financing conditions. They demonstrate that this diversification of funding sources reduces lending rates, thus improving firms' bargaining power with banks.…”