The Sienese Institute returns to the subordinated bond market with requests exceeding the offer by 3.6 times

Siena 11 January 2018 – Banca Monte dei Paschi di Siena announces that it hassuccessfully completed the issue of a “Tier 2” subordinated bond with a 10-year maturity (callable after 5 years at the option of the issuer subject to approval by the regulator), and a size of EUR 750 million.

The bond pays a fixed-rate coupon of 5.375% and has an issue price of 100%, consistent with a spread of 500.5 basis points above the 5-year swap rate. Confirming the interest for Montepaschi Group, returned to the subordinated bond market with this issue, the transaction was met with orders for over EUR 2.7 billion from about 250 institutional investors, 3.6 times above the offer. Bonds were allocated according to the following geographical breakdown:

United Kingdom (52%), Italy (25%), Germany, Austria and Switzerland (9%), Nordic countries (3%), France (2%), BeneLux (2%), Spain and Portugal (1%), Asia (1%) and others (5%).

The allocation by investor type is as follows: fund managers (52%), hedge funds (29%), banks and private banks (15%), insurance companies (3%) and other (1%).The bond, which is reserved to institutional investors, will be listed on the Luxembourg Stock Exchange.

The expected ratings for the bond are CCC+ (Fitch), Caa2 (Moody’s).

Global coordinators & Joint bookrunners: Goldman Sachs International and Mediobanca. Joint bookrunners: Bank of America Merrill Lynch, Barclays, JP Morgan, MPS Capital Services and UBS.


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