(Finance) – Banco BPM issued one Additional Tier 1 perpetual instrument for an amount equal to 300 million euros. The transaction is part of the efficiency of the capital structure and allows the Group to reach the Additional Tier 1 capital target, further strengthening its capital position. The securities, intended for institutional investors, are issued at par and pay one semi-annual coupon, fixed and non-cumulative, equal to 7% and can be called up by the issuer starting from 12 April 2027 and every 6 months thereafter.
In case of no recall, the new coupon fixed rate will be determined by adding the original spread to the 5-year mid swap rate in euro to be recorded at the time of the recalculation date and will remain fixed for the next 5 years (until the next recalculation date). Coupon payment is totally discretionary and subject to certain limitations. The security also provides for a temporary reduction of the nominal value if the CET1 ratio of the group falls below 5.125%.
Investors who participated in the operation are mainly fund managers (84%), banks (7%) and insurance and pension funds (7%), while the geographical distribution sees the prevalent presence of foreign investors (including UK with 42% and France with 15%) and Italy (20%). Morgan Stanley acted as Sole Bookrunner, together with Banca Akros (related party of Banco BPM) as Other Bookrunner.