Financial

Further, important step forward in executing the Restructuring Plan

Siena, 15 January 2020

Banca Monte dei Paschi di Siena announces that it has successfully completed the placement of a fixed-rate Tier 2 subordinated bond, with a 10-year maturity (callable after 5 years from the issue date at the issuer’s discretion, subject to regulatory approval), reserved to institutional investors, with a EUR 400 million size at an 8% annual yield.

The deal completes the issuance programme for this type of instrument set by a specific commitment with the European Commission and represents a further and important step forward in the execution of the Bank’s Restructuring Plan. The issue was met by an excellent market response, with a final order-book exceeding EUR 900 million from more than 100 investors.

The bond was placed across various institutional investor categories, comprising Asset Managers (86%), Banks/Private Banks (11%) Hedge Funds (2%) and others (1%). The geographical breakdown was the following: United Kingdom and Ireland (55%), Italy (28%), Switzerland (7%), France (5%) other countries (5%).

The bond, documented under BMPS’ Debt Issuance Programme, with expected Caa1 (Moody's)/CCC+ (Fitch) / B (low) (DBRS) ratings, will be listed on the Luxembourg Stock Exchange.

Banca IMI, Barclays, BofA Securities, Goldman Sachs, MPS Capital Services and Natwest Markets managed the placement acting as Joint Bookrunners.
 

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