The market liked the new bond of Bpm bank, offered for 750 million and requested for 1,3 billion. The issue, a covered bond at 5 years old, It offers a fixed coupon of 3,75% and is part of the institute's 2 billion euro covered bond program (Bpm Covered Bond 10). It is, says the note from the bank led by Giuseppe Castagna, the first issue of European covered bonds (premium) issued by Banco in compliance with the new European directive transposed on 30 March 2023 and aimed at institutional investors.
Orders for almost half from Italy
The security, with a maturity date of 27 June 2028 and an expected rating by Moody's of Aa3, will be listed on the Luxembourg Stock Exchange.
The orders were distributed as follows: Italy (47%), Germany-Austria-Switzerland (20%), Nordic Countries (14%), Benelux (11%) and United Kingdom (6%).
The placement was handled by Banca Akros (related party of the issuer), Credit Agricole CIB, Barclays, IMI- Intesa San Paolo, Landesbank Baden-Wurttemberg, Raiffeisen Bank International AG and UniCredit; NORD/LB and Helaba acted as Co-Lead Manager.
What is a covered bond
The covered bond is a guaranteed bank bond with a very low issuer risk, since for its repayment the bank binds a part of the assets intended exclusively for the remuneration of the bondholders. This feature gives the covered bond high liquidity.
Banco Bpm at the beginning of June had placed a green bond always at 5 years, but callable starting from the fourth year. The yield on the bond was 6% and orders from institutional investors exceeded €1,3 billion against an offer of €750 million.
