FinecoBank has successfully completed the placement of its first issue on the market of senior preferred instruments, intended for qualified investors, for a total amount of € 500 million and a coupon for the first 5 years of 0.50% (with spread equal to 5 years Mid Swap rate + 70 basis points) compared to an initial guidance of 5 years Mid Swap rate + 100 basis points. The narrowing with respect to the initial guidance, the company reports, is one of the most significant occurred for this type of instrument in 2021 both in the Italian and European panorama, thanks to an overall demand that exceeds 4 times the offer.
The issue recorded an order volume of € 2.02 billion. The placement allows the bank to immediately meet the fully loaded MREL requirement on the Leverage Ratio Exposure (5.18%), which will come into effect from 1 January 2024, with a negligible impact on the bank’s profits. Only institutional investors took part in the placement, mainly asset managers (70% of the total) and banks / private banks (33%). The issue was mainly placed to institutional investors from Italy (32%), France (27%), United Kingdom (11%), Germany and Austria (9%), Benelux (7%), Nordics (6%), Switzerland (5%).
In detail, the issue has the following characteristics: maturity 6 years with the possibility of calling the issuer in the fifth year, public placement, intended for trading on the unregulated Global Exchange Market managed by Euronext Dublin, rating equal to BBB (S&P Global Ratings), an annual fixed-rate coupon for the first 5 years, at a variable rate between the fifth and sixth years. Citigroup Global Markets Limited, Mediobanca, Morgan Stanley & Co. Limited and UniCredit Bank AG acted as joint bookrunners and joint lead manager.