Lombard loans in Italy.
Private credit against Italy-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against Italy-listed shares is credit secured by a pledge of equity listed on the Borsa Italiana. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment. Known locally in some markets as “credito lombardo”, the instrument is the same: a loan secured by a pledge of listed shares.
- Lombard loans are arranged against shares listed on the Borsa Italiana (Borsa Italiana).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in EUR or cross-currency.
- Structured under the CONSOB regime, with disclosure from 3% (5% for SMEs).
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal Italy venue: Borsa Italiana (Euronext Milan) (Borsa Italiana). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in Italy are regulated by Commissione Nazionale per le Società e la Borsa (CONSOB). Substantial-shareholding disclosure is triggered from 3% (5% for SMEs), and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in EUR or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | Borsa Italiana (Euronext Milan) (Borsa Italiana) |
|---|---|
| Regulator | Commissione Nazionale per le Società e la Borsa (CONSOB) |
| Currency | EUR (cross-currency available) |
| Disclosure threshold | From 3% (5% for SMEs) substantial-holding disclosure |
| Principal indices | FTSE MIB, FTSE Italia Mid Cap, FTSE Italia Small Cap |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
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Disclosure and regulation
Italian disclosure sits in the TUF: under Article 120 a voting-rights holder notifies CONSOB at 3%, or 5% for smaller issuers, then at the familiar higher steps. A Lombard loan against a Milan-listed holding keeps ownership and the vote with the client and does not, in itself, cross these lines. Because the first threshold is low, we pay close attention to where a substantial position sits relative to the 3% mark, and to any takeover or related-party overlay. The credit and any top-up terms are documented so that enforcement would not compel a filing or disturb the client's standing in the company.
An illustrative example
Consider, purely by way of example, a family holding €30 million of an FTSE MIB constituent that arranges a Lombard loan at 45% loan-to-value, comfortably within our 20–65% range, drawing about €13.5 million. The shares remain the family's, dividends and voting rights continue undisturbed, and no disposal takes place. The advance can be drawn in euro or in another currency according to where the family's commitments fall. The figures are rounded and purely illustrative, meant to convey the shape of a facility rather than any quoted rate or term.
Illustrative only — not an offer, a quotation, or a commitment to lend.