BNP Paribas Securities Services has been selected by Italian pension fund Fondoposte to provide securities lending services covering around €2.3 billion of assets.
The new mandate extends the commercial relationship between the two firms, with the French custodian providing depositary banking services to Fondoposte since 2016.
“After a thorough evaluation process, we selected BNP Paribas’ securities lending services with a view to maximise value for our participants. Our securities lending programme will be activated in accordance with Covip’s guidelines and will only include bonds,” said Vittorino Metta, general manager of Fondoposte.
Fondoposte’s president, Antonio Nardacci, added the proceeds from the securities lending programme will allow the pension fund to cover management costs and alleviate costs for its members.
BNP Paribas Securities Services has increased its strategic focus in Italy and the Southern Europe region, where it has grown both its depositary network and service offerings.
Last week, it was appointed the depositary bank by Fondo Italiano d’Investimento SGR (FII SGR) to provide services to a new private equity fund dedicated to minority investing.
The custodian also appointed one of its most senior Americas sales executives, Andrea Cattaneo, as its new head of Italy, Switzerland and Iberia (Andorra, Portugal and Spain), based in Milan.
“This transaction further strengthens the 20-year partnership between the Poste Group and BNP Paribas in Italy. It is this close relationship which has enabled us to implement this value-added service in the current complex environment,” added Alessandro Gioffreda, head of territory management, BNP Paribas Securities Services.4