(Finance) – BFF Banka company active in specialized finance and listed on Euronext Milan, has successfully placed a new senior preferred social unsecured bond loan for a total amount of 300 million euros and with a duration of 5 years (with early repayment option in the fourth year) at a fixed rate of 4.750% per annum, as part of the 2.5 billion euro EMTN (Euro Medium Term Note) Programme.
The bonds were placed at a reoffer yield equal to 4.775% (corresponding to a spread of 190 basis points on the reference mid-swap rate) payable annually and were intended solely for qualified institutional investors in Italy and abroad.
The operation recorded a total of one request greater than 675 million eurosequal to approximately 2.25 times the offer (approximately 425 million euros at the reoffer), with high quality and broad geographical diversification of institutional investors, we read in a note.
The issue, consistent with the bank’s funding plan, was carried out to allow the compliance with MREL requirementsmandatory for BFF from 1 January 2025.
The net proceeds of the bonds will be used to finance and/or re-finance Eligible Social Assets, as defined in the Bank’s Social Bond Framework, published in September 2023. This is the first issue under the Social Bond Framework.
“This is the first issue under the Social Bond Framework published in September 2023, with which BFF offers investors the opportunity to contribute to the group’s sustainability objectives, and, at the same time, achieve their responsible investment targets – commented the CFO Piergiorgio Bicci – We are satisfied with the high demand and required return, which confirm investors’ appreciation of our credit and capital market strategies.”
The placement operation was handled by Quote, Equity, Intesa Sanpaolo And Morgan Stanley as Joint Bookrunners. Intesa Sanpaolo also supported BFF as ESG Structuring Advisor in the preparation of the Social Bond Framework.