(Alliance News) - Banca Popolare di Sondrio Scpa announced Tuesday that it has placed a EUR300.0 million Tier 2 bond, with demand received of EUR1.8 billion.

The bond was issued at a price of 100 and carries an annual coupon of 5.505 percent for the first five years. The issue attracted considerable interest in the market from more than 190 institutional investors from different countries and was allocated 60 percent abroad. The bond spread, initially announced to be five-year mid-swap plus 325 basis points, was consequently reduced to the final level of plus 280 basis points.

"The transaction finalized today is an integral part of the existing funding plan and contributes to further improving the capital structure, consolidating the wide margins on regulatory requirements that Banca Popolare di Sondrio already has," said the bank, which also repurchased EUR200 million of its own bonds.

Banca Popolare di Sondrio's stock closed Tuesday down 0.1 percent at EUR7.16 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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