Banco BPM SpA announces that it has successfully completed a new subordinated Tier 2 issue, with a maturity of ten years (January 2032), repayable in advance five years before maturity, for an amount of € 400 million.
The bond was issued at a price of 99.521 and pays a fixed coupon of 3.375% for the first 5 years; should the issuer decide not to exercise the early redemption option, the coupon for the subsequent period to maturity would be restated on the basis of the 5-year swap rate at the end of the fifth year, increased by a spread of 340 bps.
The success of this operation testifies to the market’s confidence in the Banco BPM Group.
The security, which is reserved for institutional investors, was issued under the issuer’s Euro Medium Term Notes Program and, due to its subordinate status, has an expected rating of B1 / BB (Moody’s / DBRS).
The investors who participated in the operation are mainly asset managers (55%) and banks (15%), while the geographical distribution sees the prevalent presence of foreign investors (including the United Kingdom with 24%, Nordic countries with 21%, France with 14% and Germany, Austria and Switzerland with a total of 5%) and Italy with 33%.
The transaction contributes to the further strengthening of the Bank’s already robust capital structure.
Banca Akros (related party of the issuer1), Barclays, Credit Suisse, Goldman Sachs, JP Morgan and Société Générale acted as Joint Bookrunners.