Intesa Sanpaolo places dual tranche bonds, orders for 5 billion

Intesa Sanpaolo places dual tranche bonds orders for 5 billion

(Finance) – Intesa Sanpaolo successfully placed a dual tranche euro bond issue on the institutional market by raising funds total orders for 5 billion euros about. In detail, these are Senior Preferred securities issued in two tranches (both with value date 16 April 2024): €1 billion 3-year variable rate at a level equal to 3-month Euribor + 60 basis points; euro 1 billion at 6.5 years fixed rate in Green format at a level equal to mid swap + 107 basis points.
The “use of proceeds” of the 6.5-year tranche are intended to finance or refinance all the green categories described in the “Green, Social and Sustainability Bond Framework” dated June 2022.

In a very receptive market context thanks to a positive opening and the recognized quality of the Bank, led by CEO Carlo Messinathe issue immediately attracted interest from investors, exceeding 2.5 billion euros in total orders just over an hour after launch.

Final orders of around 2.3 billion euros for the 3-year tranche allowed a narrowing of 40 basis points compared to the initial spread indication (equal to MS+100 basis points area), and orders for almost 2.8 billion of euros for the 6.5 year tranche made possible a narrowing of 38 basis points compared to the initial spread (equal to MS+145 basis points area).

Alessandro Lolli, Deputy CFO and Head of Group Treasury and Capital Managementhe has declared: “Investors have once again recognized Intesa Sanpaolo’s excellent credit quality, with strong interest on both deadlines. The tranche in Green format reconfirms the Group’s constant commitment since 2017 to supporting the ESG (Environmental, Social, Governance) transition. This operation recorded the highest peak ever observed in the order book of a Senior Preferred security in Euros by Intesa Sanpaolo, reaching 6.3 billion with 420 orders. It also represents the Italian Senior Preferred floating rate issue with the longest maturity since 2018 and the largest in Euro ever from Italy since August 2023″.

The order book allocation saw the participation of: 151 investors for the 3-year tranche, divided as follows: 76% of Fund Managers, 19% of Banks and Private Banks, 2% of Hedge Funds and 2% of Insurance and Pension Funds. The geographical distribution highlights 27% participation from France, 22% from Germany, 21% from Italy, 11% from the United Kingdom/Ireland, 7% from Spain and Portugal, 3% from Denmark and 2% from Austria; 161 investors for the 6.5 year tranche, divided as follows: 65% of Fund Managers, 25% of Insurance and Pension Funds, 4% of Hedge Funds and 4% of Banks and Private Banks.

There geographical distribution highlights 27% participation from France, 18% from UK/Ireland, 14% from Germany, 14% from Italy, 13% from Benelux, 10% from Nordics and 1% from Austria and Swiss.

The joint order book highlighted granularity and diversification. Furthermore, the 6.5-year tranche saw the participation of more than 85% of investors dedicated to the ESG sector.

The banks that participated in the placement as Joint book runners were, in addition to the IMI CIB Division of Intesa Sanpaolo, BBVA, BofA Securities, Commerzbank, Goldman Sachs International, Morgan Stanley, NatWest Markets and UniCredit.