BNP Paribas has closed the first Italian property derivatives deal, with UK property company Grosvenor. The deal is a two-year total return swap, structured around the London-based Investment Property Databank's IPD Italy all-property index from December 2006 to December 2008 and brokered by London-based broker Icap.
The size has not been revealed but was described by Grosvenor's group finance director, Nick Scarles, as "insignificant". He adds: "This was a test trade. The purpose was to show