(Finance) – Banca Popolare di Sondrio successfully placed a new covered bond issue with institutional investors for a benchmark amount of 500 million euros and a duration of 5 years. The placement it was created as part of the five billion euro covered bank bond programme, backed entirely by residential mortgages.
The operation saw a good participation from over 50 investors with overall requests which during the execution phase of the mandate reached an amount exceeding 770 million euros and final subscriptions with a prevalence
of foreign institutional subjects (approximately 52%) compared to domestic ones. The spreadinitially announced at mid-swap +83 basis points, was consequently reduced to the final level of 81 basis points above the 5-year mid-swap rate.
There fixed coupon annual is equal to 4.125%, with an issue price of the bond set at 99.536% and maturity on 24 October 2028.
There settlement date the transaction is scheduled for October 24, 2023. The stock, reserved for institutional investors, will be listed on the Luxembourg Stock Exchange.
The expected rating of the obligation by the Fitch agency is AA.
With today’s operation, Banca Popolare di Sondrio has completed the medium-long term funding plan for 2023, which is part of the 2022-25 “Next Step” Industrial Plan.