(Finance) – BPM desk concluded the placement of a new Covered Bond issue intended for institutional investors for an amount of 750 million euros and expiry 6 years under its 10-year Guaranteed Banking Bond program (BPM Covered Bond 2)
billion euros.
This is the first issue of European Covered Bond (Premium) issued by Banco BPM during 2024.
The stock, which will be listed on the Luxembourg Stock Exchange, has an expected rating of Aa3 (Moody’s). This public issue of covered bonds has a yield equal to the reference mid-swap rate +77 basis points, a fixed rate coupon of 3.375% and maturity 24 January 2030.
The issue collected orders for over 1.5 billion euros from Italian and foreign investors allocated with the following geographical distribution: Germany and Austria 36%, Italy 27%, United Kingdom and Ireland 15%, Nordic Countries 10%, France 4%, Spain 4%, and Benelux 4%. The investors who participated in the operation were mainly funds/asset managers (47%) and banks (38%).
Banca Akros (related party of the issuer1), Barclays, BBVA, Credit Agricole CIB, Landesbank Baden-Wurttemberg, Raiffeisen Bank International and Unicredit acted as Joint Bookrunners of the issue. NORD/LB acted as Co-Manager.