Bond market issues aimed at institutional investors continue. After Bper, Mediobanca, Cdp Reti and Essilor Luxottica, the time has come for Banco Bpm, which has successfully placed a new social bond.
Banco Bpm's social bond
This was a new issue Social Senior Non-Preferred, with a six-year maturity and the possibility of rearly repayment in September 2029. The amount was 750 million euros.
- orders peaked at 3,3 billion euros, with requests coming from over 190 investors. Over half of the allocated orders, Banco Bpm underlines in a note, had an ESG connotation.
The bond was issued at a price of 99,546% and pays a fixed coupon of 3,875%.
The obligation, which is reserved for institutional investors, was issued under the issuer's Euro Medium Term Notes Programme and has an expected rating of Baa3/BB+/BBB-/BBB. The proceeds will be used to refinance Eligible Social Loans, as defined in the Bank's Framework. In particular, the proceeds will be used to refinance loans to Italian SMEs, located in economically disadvantaged areas.
According to the information provided by the bank led by Giuseppe Castagna, the investors who participated in the operation are mainly asset managers (61%) and banks (17%), while the geographical distribution sees the prevalent presence of foreign investors (including France with 35%, Ireland and the United Kingdom with 19% and Nordic countries with 7%) and Italy with 28%.
