Lombard loans on Borsa Italiana.
Private, securities-backed credit against Borsa Italiana-listed shares — pledged, not sold.
A Lombard loan against Borsa Italiana-listed shares is credit secured by a pledge of equity listed on Borsa Italiana (Euronext Milan). The holder pledges the shares, draws cash against a fraction of their market value, retains ownership and dividends subject to structuring, and recovers the position on repayment. In plainer terms it is a share-backed loan: a loan against shares, not a disposal of them. Private banks call the practice Lombard lending.
- Facilities are arranged against equity listed on Borsa Italiana (Euronext Milan), Milan.
- The pledge preserves ownership, dividends, and the upside for the holder.
- Loan-to-value is set per line; funded in EUR or cross-currency.
- Structured under the CONSOB regime, with disclosure at 3% (5% for SMEs).
The venue
Borsa Italiana is the principal Italian equities venue, with a distinctive concentration in financials, utilities, and industrial conglomerates. It is now part of the Euronext federation, with harmonised market rules and pan-European order-book access.
Regulator and disclosure
Borsa Italiana (Euronext Milan) operates under the Commissione Nazionale per le Società e la Borsa (CONSOB). TUF (Testo Unico della Finanza) Art. 120 and CONSOB Issuers’ Regulation Art. 117: voting-rights notifications required at 3% (5% for SMEs), then 5%, 10%, 15%, 20%, 25%, 30%, 50%, 66.67%, 90%.
A pledge over a substantial line is arranged with that reporting regime in view, so that the facility is both discreet and compliant, and so that positions near a control or takeover threshold are not disturbed.
For who must report a pledge, and what an enforcement would make public, in each market the firm covers, see the comparison of share pledge disclosure rules.
Structuring a facility here
Lombard facilities against Borsa Italiana-listed shares are typically arranged for a tenor of twelve to thirty-six months, funded in EUR or another currency on a cross-currency basis, with the collateral held by a qualified custodian under bankruptcy-remote arrangements. Non-recourse, limited-recourse, and full-recourse structures are available; the choice interacts with the loan-to-value and the spread. Unlike a stock loan in the securities-lending sense, title does not pass: the line stays registered to the holder for the life of the facility.
| Exchange | Borsa Italiana (Euronext Milan) |
|---|---|
| City · Country | Milan · Italy |
| Regulator | Commissione Nazionale per le Società e la Borsa (CONSOB) |
| Disclosure | Substantial holdings at 3% (5% for SMEs) |
| Principal indices | FTSE MIB, FTSE Italia Mid Cap, FTSE Italia Small Cap |
| Segments | Euronext Milan main market; Euronext STAR Milan (high-standards segment); Euronext Growth Milan (SME) |
| Currency · Tenor | EUR · 12–36 months |
| Recourse | Non-recourse / limited-recourse / full-recourse |
The Italy market as a whole
The Italy country overview sets Borsa Italiana in context: the national disclosure regime, the wider securities-backed lending picture, and the common ground behind any loan against shares listed in Italy.
- Lombard loans in Italy — the country overview: the national disclosure regime, currency, and how a facility is arranged.
Financing a position listed on Borsa Italiana?
Request terms →Other exchanges in the region.
On this market, specifically.
Liquidity and the index
Borsa Italiana is now part of the Euronext federation, and its large caps — financials, utilities and industrial conglomerates — anchor the FTSE MIB, with mid- and small-cap indices beneath. Those leading names carry the free float and turnover a Lombard loan of scale needs, letting us advance against a substantial holding while any hedge or unwind stays within a session's normal volume. The high-standards STAR segment adds a well-governed mid-cap tier; on Euronext Growth Milan and the smaller lines liquidity is lighter, so we lower the advance rate and size the facility to what the book can absorb calmly.
Structuring notes
Settlement runs through Monte Titoli, now Euronext Securities Milan, so a Lombard credit against Italian equity is documented locally while the shares stay in the client's ownership, dividends and votes retained. Membership of Euronext brings a harmonised rulebook and pooled order book, but Italian law still governs disclosure and takeovers — the low TUF Article 120 thresholds in particular — so we match the structure to where a holding sits against those marks. For founding families with concentrated stakes in the conglomerates that populate the index, discretion and continuity of control are usually the point of the exercise.