(Finance) – Mediocredito Centrale has started the preparatory activities for the issuance of the first bond loan under its Euro Medium Term Note programme established on 2 August 2024 (the “New Loan”).
Subject to market conditions, a note explains, the issuance of the new loan should take place during the month of September.
In this context, Mediocredito Centrale also announces that it has received from the Bank of Italy the authorization for the early repurchase of the bond loan “€300,000,000 1.50 per cent Fixed Rate Notes due 24 October 2024” (ISIN code XS2069960057), maturing on 24 October (the “Maturing Loan”), up to a maximum amount of 150 million euros, pursuant to Articles 77, paragraph 2, and 78bis, paragraph 1, first subparagraph, letter b), of EU Regulation 575/2013 (“CRR”).
Mediocredito Centrale will therefore make itself available to repurchase on the secondary market, under the terms and conditions indicated below, from investors who request it, bonds of the Maturity Loan for a maximum aggregate amount, in terms of nominal value, equal to 150 million euros (the “Maximum Repurchasable Amount”).
To this end, Mediocredito Centrale, starting from 6 September 2024 until 27 September 2024 (the “Buyback Period”), through Intermonte SIM Spa, will enter, on a daily basis, on the multilateral trading system of Bloomberg Trading Facility Limited (“BMTF”), as well as on Euronext Access Milan (professional segment formerly ExtramotPRO, the latter, together with BMTF, the “Trading Venues”), purchase orders at a price determined as indicated below.
Holders of the Maturity Loan who intend to sell their bonds to Mediocredito Centrale must enter, through – if applicable – their intermediaries adhering to one of the Trading Venues, their sales orders during the Buyback Period.
The repurchase price will be calculated by discounting the gross future flows of the maturing Loan (principal repayment and annual coupon 1.50%) at the flat interpolated Euribor rate (without the application of any spread). This rate, corresponding to the trading yield (act/360), is obtained from the linear interpolation of the two latest published Euribor act/3601, with maturity immediately preceding and immediately following the repayment date of the maturing Loan.
Mediocredito Centrale may terminate the insertion of purchase orders on the Trading Venues even before the end of the Buyback Period, if the Maximum Buyback Amount is reached.
The Maturity Loan bonds not purchased by Mediocredito Centrale during the Repurchase Period will be repaid in full on the relevant maturity date (24 October 2024).
During the Buyback Period, Mediocredito Centrale will communicate any exceeding of the thresholds of 20%, 40%, 60% and 80% of the Maximum Buyback Amount through: a press release published on the Mediocredito Centrale website (www.mcc.it/sala-stampa/) and disseminated through eMarket SDIR, as well as published on the website of the Luxembourg Stock Exchange, and delivery of notices through Euroclear and/or Clearstream, Luxembourg.