Intesa Sanpaolo has successfully placed a Tier 2 subordinated bond ("T2") on the institutional market for €1.25 billion, attracting total orders of approximately €3 billion and interest from 213 investors.
Specifically, it is a 12-year bond with an early redemption option callable after 7 years. Along with the recent Senior Non-Preferred bond issued on September 5, this issuance is part of the 2025 Funding Plan.
Thanks to a granular and high-quality order book, the transaction was priced at Mid Swap + 195 basis points, marking the lowest cost ever achieved for this type of subordinated bond by an Italian bank in the last 14 years.
Order book allocation:
- 63% Fund Managers
- 13% Official Institutions
- 9% Hedge Funds
- 9% Insurance Companies and Pension Funds
- 5% Banks and Private Banks
- 1% others
with the UK taking the lion's share of the final allocation (45%) followed by 15% from France, 13% from Asia, 8% from Germany/Austria/Switzerland, 7% from Italy, 7% from Benelux, 3% from Spain, and 2% others.
Joint book runners - in addition to the IMI CIB Division of Intesa Sanpaolo - were Barclays, BofA Securities, Citi, Goldman Sachs International, J.P. Morgan and Morgan Stanley.
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Intesa Sanpaolo S.p.A. published this content on November 07, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 07, 2024 at 18:10:30.217.