(Alliance News) - Banco BPM Spa announced on Wednesday that it has completed the placement of a new Covered Bond issue aimed at institutional investors for a total amount of EUR1 billion.

The bond has a maturity of 6 years and is issued under the bank's EUR10 billion Guaranteed Bank Bond program.

As explained by the company in a statement, the security, which will be listed on the Luxembourg Stock Exchange, has an expected rating of Aa2 from Moody's.

The public covered bond issue offers a yield equal to the reference mid-swap rate plus 34 basis points, a fixed coupon rate of 2.75%, and matures on 25 February 2032.

The issuance attracted orders exceeding EUR2.6 billion.

On Wednesday, Banco BPM closed up 2.6% at EUR12.32 per share.

By Claudia Cavaliere, Alliance News reporter

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