(Finance) – As part of the liability management operation announced on March 4th which provides for a repurchase offer of its subordinated bond loan denominated in euro at a fixed rate “Euro 200,000,000 Fixed Rate Reset Subordinated Notes due 30 July 2029 – ISIN XS2034847637”, Banca Popolare di Sondrio has successfully placed with institutional investors a new Tier 2 subordinated bond issue expiring on 13 March 2034, repayable in advance 5 years before maturity, for an amount of 300 million euros.
The bond was issued at a price of 100 and provides, for the first five years, an annual coupon of 5.505%.
The issue attracted considerable interest on the market from over 190 institutional investors from various countries who made requests for approximately 1.8 billion euros and was, finally, 60% allocated abroad. The bond spread, initially announced as 5-year mid-swap +325 basis points, was consequently reduced to the final level of +280 basis points.
The bond, issued under the Bank’s EMTN Programme, will be settled with value date 13 March 2024 and subsequently listed on the Luxembourg Stock Exchange with an expected rating of BB (S&P Global Ratings) and ISIN code XS2781410712.
The operation finalized today is an integral part of the existing funding plan and contributes to further improving the capital structure, consolidating the wide margins on the regulatory requirements that Banca Popolare di Sondrio already has.
BofA Securities Europe SA, and UBS Europe SE acted as Joint Bookrunners.