(Finance) – BPM desk has successfully completed one new Tier 2 subordinated issuewith a maturity of twelve years (November 2036) and the possibility of early repayment in November 2031, for an amount of 500 million euros.
The issue, explains a note, received, even on a day of volatile markets, aexcellent response from investors. The security is issued under the issuer’s Euro Medium Term Notes Program and is reserved for institutional investors.
The bond was issued at a price of 99.882 and pays a fixed annual coupon of 4.50% until November 26, 2031. If the issuer decided not to exercise the early redemption 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 225 bps.
The investors who participated in the operation are mainly asset managers (71%) and banks (11%), while the geographical distribution sees the prevalent presence of foreign investors (including the United Kingdom and Ireland with 27%, France with 15 % and Germany, Austria and Switzerland overall with 7%) and Italy with 34%.