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Italy is on the verge of an important expansion of its securitisation framework that could transform how companies monetise inventory, from ageing wine barrels to parmesan wheels and prosciutto legs, potentially bringing in a wider range of investors.

On 22 October, the Senate approved a section of the annual legislative package (disegno di legge or DDL) aimed at making warehouse stock securitisations significantly more efficient, broadening funding options and clarifying balance sheet optimisation mechanisms.

Market interest is already building. “Several clients are already asking us about possible structures once this proposal is approved,” said Salvatore Graziadei, counsel at Hogan Lovells.

Inventory finance is already possible in Italy, where it has become a strategic tool for Italy's manufacturing and agri-food sectors, allowing companies to monetise otherwise illiquid assets.