(Telestock) – Mediocredito Centrale – Banca del Mezzogiorno SpA (MCC), controlled by the Ministry of Economy and Finance (MEF) through Invitalia, has successfully completed the placement of a “Social” bond – unsecured senior preferred for a total amount of Euro 400 million, with an annual fixed rate coupon of 3.750% (re-offer yield 3.822%), maturing in September 2029 (BTP rate 3.35 07/01/29 +97bps).
The bond loan is the first issue under the 1 billion euro EMTN (Euro Medium Term Note) programme established on 2 August 2024. The placement, intended for institutional investors, has seen a wide diversification of Italian and foreign subscribers with orders exceeding 800 million euros, of which over 20% are from foreign investors. The bond loan issue date is 20 September 2024 and, starting from that date, the securities representing the same will be listed on the regulated market of the Luxembourg Stock Exchange.
It is expected that the rating of the bonds is in line with that assigned to the bank by the agencies S&P and DBRS, respectively equal to BBB- (Stable) and BBB (Stable).
The operation reflects the Bank’s mission aimed at supporting mainly the economic and social fabric of Southern Italy, and is in line with the objective of promoting sustainable growth according to a market approach.
The “Social” bond was issued under MCC’s new Social Financing Framework dated July 2024, consistent with the guidelines of the International Capital Market Association (ICMA) and aimed at promoting the achievement of the Sustainable Development Goals (UN SDGs, United Nation Social Development Goals – Agenda 2030). The Framework was structured with the support of Intesa Sanpaolo – IMI CIB Division which acted as Sole ESG Structuring Advisor and obtained the Second Party Opinion from the independent auditor ISS-Corporate Solutions.
The proceeds of the Bank’s issuance will be used to finance/refinance loans to businesses that contribute to economic development with a social impact. MCC is committed to achieving full allocation of the funds raised within two years of issuance.
Joint Arrangers and Lead Managers of the EMTN Program are Banca Akros SpA – Gruppo Banco BPM, UniCredit and Intesa Sanpaolo – IMI CIB Division. Paying Agent is Mediocredito Centrale – Banca Del Mezzogiorno SpA
As regards the legal aspects, Mediocredito Centrale was assisted by the law firm Legance Avvocati Associati, the Joint Arrangers and Lead Managers by the law firm Clifford Chance.