(Alliance News) - Banco di Desio e della Brianza Spa announced Tuesday evening that it has successfully completed the placement of a Covered Bond issue under its covered bond program - OBG, rated AA by Fitch - for a total amount of EUR400 million with a maturity of 4.5 years intended for institutional investors.

This is the first European Covered Bond Premium issue carried out by Banco Desio in compliance with the new European directive transposed in Italy last March, the company specified in a note.

The issue's book-building process "attracted a particularly significant demand of more than EUR900 million from around 50 institutional investors globally, which allowed the pricing to be reduced to +75bps compared to mid-swap with a fixed coupon of 4 percent paid annually," the bank points out.

The issue was allocated with the following geographic distribution: Italy 41%, UK and Ireland 19%, Nordic countries 17%, Germany and Austria 10%, BeNeLux 6% other 7%.

The final allocation was mainly to banks and private banks-56%-funds and asset managers-36%, institutions and central banks-7%, insurance companies-1%.

The transaction enables the completion of Banco Desio's Funding Plan 2023 by expanding access to the wholesale funding market of several jurisdictions.

"We are very pleased with this new transaction, which allows us to expand and diversify our funding to finance the needs of our customers and increase new credit disbursements," commented CEO Alessandro Decio. "This is an important signal from the market confirming the solidity and resilience of the Bank's business model.

Banco di Desio e della Brianza on Tuesday closed 1.2 percent in the red at EUR3.29 per share.

By Chiara Bruschi, Alliance News reporter

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