It was on that Tuesday, August 30, 2022 that the news was made official on the website of the European Credit Assessment Institution , modeFinance. ETC INVEST S.P.A, holding company of the Italian multinational group “Export Trading Cooperation (ETC) obtains the A3- rating published by the European Securities and Markets Authority (ESMA).
The ability to honor the repayment of its financial obligations and the underexposure to possible unfavorable macroeconomic conditions were highlighted during the analysis of the company.
The Italian multinational group “Export Trading & Cooperation (ETC), was created in 2012. ETC offers consulting services in project financing and trade financing. The company focuses its operational activities exclusively on the African markets, thanks to its international network of established representative offices, subsidiaries and funds across Europe and Africa. Over the years, from its headquarters in Treviso, Italy, the group has established its African Regional Office (RBA). ) in Cotonou (Benin – UEMOA), a subsidiary in Douala (Cameroon – CEMAC) and correspondents in several countries between Europe and Africa.
An active member of SWIFT (Society for Worldwide Interbank Financial Telecommunication), the Group is today positioned as a major player in the management of investment projects in Africa, in sectors ranging from agro-business to industry, but also transport and green energies. A protean company that relies on its ability to facilitate interbank messages between financial institutions that operate with Africa.
Appropriate organization and governance
Since its creation, ETC Group has pursued a process of internationalization and has been able to adapt its organization over time.
The company notably changed its legal form, becoming a joint stock company.
The group also improved its operational and governance structure by strengthening its Board of Directors through the appointment of an additional independent director. ETC Group has also at the same time strengthened its control structure by appointing a Supervisory Board.
Therefore, the improved structure of the company makes the roles and responsibilities of the stakeholders more understandable.
The entry into the capital of major shareholders strengthens the solidity of ETC Group.
As of 2021, Monte Paschi Fiduciaria S.p.a retains full control of the Group. The two founding shareholders are now members of the Board of Directors and however retain a minority of shares.
The Group has been growing continuously for several years now due to the sustained increase in its sales. The clearly satisfactory 2021 financial year allows it to maintain a good level of liquidity and solvency, comfortable margins and certain profitability.
The modeFinance Corporate Credit Rating analysis did not reveal any questionable records.
The Group’s report published by the Central Bank of Italy is free of critical problems and also reveals good management of maturity and overdraft risks.
Beyond the great pride that this A3- financial rating provides, due to the recognition of the work, the rigor, the quality and the commitment of all the members and collaborators of ETC Group, it is also and above all an instrument of financial inclusion and a support for growth from which African economic players and the group’s partner banks will be able to benefit.
Indeed, for banking partners, it is a major weighting tool in their exposure to credit risks. As a guarantee institution, ETC Group offers, through its A3 rating, more efficient surety and guarantee instruments better suited to the challenges of compliance with prudential ratios.
In short, this note constitutes a real source of motivation for the financing of African countries’ economies and an additional means in the effort of resilience despite this turbulent macroeconomic context.
