INTESA SANPAOLO S.P.A. (Alliance News) - Banca Popolare di Sondrio Scpa announced Monday that it has successfully placed a new covered bond issue with institutional investors with a benchmark amount of EUR500 million and a maturity of 5.5 years.
The placement was made as part of the EUR5.00 billion covered bond program, backed entirely by residential mortgages.
The transaction was well received by the market, with applications reaching a total amount of around EUR1 billion during the mandate execution phase and final subscriptions distributed almost equally between foreign and domestic institutional investors. The bond spread, initially announced as mid-swap +80 basis points, was consequently reduced to the final level of 77 basis points above the mid-swap rate.
The fixed annual coupon is 3.25 percent, with the bond's issue price set at 99.533 percent and maturity on July 22, 2029. The transaction's settlement date is scheduled for January 22, and the bond, reserved for institutional investors, will be listed on the Luxembourg Stock Exchange.
The expected rating of the bond by the Fitch agency is 'AA'.
As global coordinator of the issue, Intesa Sanpaolo Spa and UniCredit Bank AG acted while Intesa Sanpaolo Spa, LBBW, Raiffeisen Bank International AG, Santander, Société Générale SA and UniCredit Bank acted as joint bookrunners.
Pop di Sondrio's stock is up 0.5 percent at EUR5.89 per share.
By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter
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