BANCA MPS: PLACEMENT OF EUR 500 MILLION SENIOR PREFERRED BOND WITH ITALIAN AND INTERNATIONAL INSTITUTIONAL INVESTORS SUCCESSFULLY COMPLETED
Siena, 29 August 2023 - Banca Monte dei Paschi di Siena has successfully completed the issue of a EUR 500 million Senior Preferred unsecured bond with a 4-year maturity (callable after 3 years), placed to institutional investors, in line with the 2023 funding plan objectives and in compliance with MREL targets.
The transaction attracted orders in excess of EUR 700 million from over 90 high quality domestic and international investors, confirming the market’s appreciation for Banca MPS, just a few months after its return to the debt capital markets in February 2023.
Thanks to the strong and well-diversified demand, MPS has set the bond’s final yield at 6.75%, with a 12.5 basis point reduction vs. the initial pricing thoughts and in line – albeit in a context of higher interest rates – with the yield for the bond issued in February, which had a shorter maturity.
The bond was placed with various categories of institutional investors, including Fund Managers, Banks and Private Banks, with the following geographical breakdown: Italy (58%), United Kingdom (28%) and other Countries (14%).
The bond, issued under BMPS’s EMTN Debt Issuance Programme, is expected to be rated B1 (Moody's) / B+ (Fitch) / BBL (DBRS) and will be listed on the Luxembourg Stock Exchange.
BofA Securities, Banca Monte dei Paschi di Siena, J.P. Morgan, Mediobanca and Morgan Stanley acted as joint bookrunners for the issue.