FinecoBank has successfully completed the placement of its second issue on the market of Senior Preferred bonds intended for qualified investors, for a total amount of 300 million euro and a coupon for the first 5 years of 4.625% (with spread equal to 5 years Mid Swap rate + 150 basis points) compared to an initial guidance of 5 years Mid swap rate + 175 basis points.
The final spread of the operation is the lowest for this type of instrument in 2023 in the Italian panorama, thanks to an overall demand equal to 4 times the supply and to the quality of the credit.
The issue recorded an order volume of Euro 1.2 billion, confirming the appreciation shown towards FinecoBank by the market also in the fixed-income segment. The placement allows the Bank to have an additional buffer with respect to the fully loaded MREL LRE requirement.
Only institutional investors took part in the placement, mainly asset managers (71% of the total) and banks/private banks (19%). The issue was mainly placed with institutional investors in Italy (36%), the United Kingdom (26%), France (16%), Germany and Austria (16%).
In detail, the issue has the following characteristics: 6-year maturity with the possibility of a call for the issuer in the fifth year, public placement, intended for trading on the regulated market managed by Euronext Dublin, rating equal to BBB (S&P Global Ratings), annual coupon at a fixed rate for the first 5 years, at a floating rate between the fifth and sixth year. It should be remembered that the issue of the Senior Preferred instrument is part of the EMTN (Euro Medium Term Notes) programme. BNP Paribas, Société Generale and UniCredit Bank AG acted as joint bookrunners and joint lead managers.