The placement of new Cassa Depositi e Prestiti bonds intended for the retail market is underway.
The public subscription offer of CDP bonds, not subordinated and not guaranteed by the State, will leave on Tuesday 7 November and will be destined only to natural persons resident in Italy.
The total amount will be equal to 1.5 billion euros. The bonds will be offered to the public from 7 to 27 November 2023, except in the case of early closure, and will be traded on the Mercato Telematico delle Obligazioni (MOT) of the Italian Stock Exchange.
The minimum investment is 1,000 euros, equal to the nominal value of each bond. Substitute tax equal to the preferential rate of 12.50% will be applied to interest and other income received by subscribers. The proceeds from the retail bond loan, the third in the history of CDP, “will allow further resources to be allocated to support businesses, territory and infrastructure with the aim, in line with the 2022 – 2024 strategic plan, of concretely contributing to the growth of the country”, we read in a note.
The CDP bonds (ISIN code IT0005568719) will have a duration of six years (maturity in 2029), will be issued at par at a price of 1,000 euros for each bond and will be fully repaid at par and in a single installment on the maturity date.
The securities will accrue interest at a mixed rate: fixed for the first three years and variable for the following three. During the period of application of the fixed rate, investors will receive, quarterly, in arrears, a fixed coupon equal to 5% gross per year of the nominal unit value of the bonds. During the period of application of the variable rate, investors will receive quarterly, in arrears, a gross coupon indexed to the 3-month EURIBOR, increased by a margin of at least 0.90% per annum. The definitive margin will be set at the end of the placement period.
Intesa Sanpaolo and UniCredit will act in the roles of placement managers and coordinators of the offer. The list of distributors, a network of 24 banks, is contained in the definitive conditions relating to the offer, published and available for consultation on the dedicated page of the Cassa Depositi e Prestiti website.
The new issue reserved for retail customers it comes after other issues aimed at institutional investors, including CDP’s first Green Bond and the debut on the American capital market, with the first dollar bond issue. The following medium-long term ratings were assigned to CDP, in line with those of the Italian Republic: Baa3 by Moody’s, BBB by S&P, BBB by Fitch and BBB+ by Scope. For S&P the rating of the bonds is BBB.
The prospectus relating to the offer and listing of the bonds is a available to the public on the CDP website (www.cdp.it/obbligazioni2023), placement managers and placement agents.