An Italian dairy cooperative has sold bonds backed by Parmesan cheese, the company said on Tuesday, a rare example of one of the country's plethora of small firms raising funding on capital markets. Three years of recession have choked bank lending and Prime Minister Matteo Renzi's government is trying to encourage firms to raise money elsewhere and take advantage of a tentative economic recovery.

Cheese-maker 4 Madonne Caseificio dell'Emilia has done just that, raising 6 million euros ($6.55 million) in mini-bonds guaranteed by wheels of Parmesan. 4 Madonne's chairman said it would use the money raised in the bond issue to improve its facilities and promote the thick-rinded cheese it makes in Italy's northern gastronomic heartland Emilia Romagna.

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Source: http://nypost.com/