(Finance) – Banca Monte dei Paschi di Siena successfully completed the placement of a new unsecured Senior Preferred bond issue with a maturity of 5 years (repayable in advance after 4 years) for an amount of 500 million euros.
The operation collected orders for approximately 1.3 billion euros by over 140 Italian and international investors, confirming, also on this occasion, the institutional market’s strong appreciation for the Bank.
Thanks to solid demand, the coupon was defined at a level of 4.75%, below the initial indication of yield announced in the 5% area and two percentage points lower than the previous senior preferred issue of August 2023, therefore continuing the trend of cost reduction of funding.
There request it was well diversified, both in terms of type of investors and geographical distribution with Italy 45%, the United Kingdom and Ireland overall 39% and other countries 16%.
The new unsecured Senior Preferred bond is issued under the issuer’s Euro Medium Term Notes Program intended for institutional investors. The expected rating is Ba3 by Moody’s, BB by Fitch and BB Low by DBRS and it will be listed on the Luxembourg Stock Exchange.
The placement consortium that handled the operation was made up of Banca Monte dei Paschi di Siena, Citi, JP Morgan, Jefferies, Mediobanca, NatWest Markets and UBS, who acted as Joint Lead Managers & Bookrunners.
With this operation, the Bank consolidates its ability to access the international funding market, continuing to implement the funding plan defined in the 2022-2026 Business Plan.