The Italian Treasury is expanding its securitization program to include loans to individuals, residential mortgages and loans to local authorities. The first issue from the new program, called INPDAP, will be approximately E5 billion, according to a banker bidding for it. No bankers have been tapped for it yet. The program is part of the Treasury's ongoing bid to securitize assets to reduce its debt-to-GDP ratio.
The Treasury recently mandated Bank IMI, J.P. Morgan Securities and Lehman Brothers to lead a E3.5 billion INPS transaction. INPS is the Treasury's securitization program that handles delinquent social security payments. Bankers are also expecting the Treasury to bring another SCIP deal sometime this year. The SCIP series securitizes commercial real estate owned by the Italian government. The last SCIP deal was E6.6 billion and was priced in December.