(Finance) – BPM desk successfully completed a new Tier 2 subordinated issue, with a maturity of ten years and three months (June 2034), repayable in advance starting from the fifth year, for an amount of 500 million euros.
The title, reserved for institutional investors and issued under the issuer’s Euro Medium Term Notes Programme, saw orders for 2.5 billion euros, equal to 5 times the amount placed.
The bond was issued at a price of 99.617 and pays a fixed annual coupon of 5% until June 18, 2029; should the issuer decide not to exercise the early repayment option, the coupon would be redetermined on the basis of the 5-year euro swap rate at the time of the recalculation date, increased by a spread equal to 245 bps.
The investors who participated in the operation are mainly asset managers (58%) and banks (16%), while the geographical distribution sees the prevalent presence of foreign investors (including the United Kingdom and Ireland with 30%, France with 19 %, Nordic countries with 14% and Germany, Austria and Switzerland with a total of 10%) and Italy with 16%.
Banca Akros (related party of the issuer), BofA Securities, Citi, Crédit Agricole CIB, HSBC, Santander, Société Générale acted as Joint Bookrunners.