Today Banca Popolare di Bari and its subsidiary Cassa di Risparmio di Orvieto successfully placed a senior bond of 597,2 million euro with international investors, issued as part of the residential mortgage securitization operation called " 2017 Popolare Bari RMBS”. Interest was very high, with orders coming from 23 investors from 8 European countries. Memberships came mainly from banks and asset managers belonging to the European Community (Italy 26%, UK 24%, France 19%, Germany 11%, BeNeLux 10%, Spain 8%, other European Community countries 2%).
The positive result of the placement is assessed by the Banca Popolare di Bari Group as a great sign of confidence, above all because it was obtained in a market context characterized by the persistence of elements of uncertainty.
The transaction further strengthens the Group's liquidity position, further supporting the Bank's economic growth and diversifying funding sources. This transaction represents the first senior issue on the market for the Banca Popolare di Bari Group and, in any case, follows the issue and placement of mezzanine and junior securities as part of the NPL securitization transaction completed at the end of 2016, the first in Italy to benefit from the public guarantee called GACS.
“This issue, declared Marco Jacobini, Chairman of Banca Popolare di Bari, represents a great success for the whole Group: the first senior placement on the market had a great response from European private investors, testifying to the trust that the financial community, both Italian and abroad, relies on our Group. The further strengthening of the liquidity position and the diversification of funding sources represent one of the pillars of our Business Plan”.
Banca Popolare di Bari and Cassa di Risparmio di Orvieto were assisted by JP Morgan as placement bank and arranger of the underlying residential mortgage securitization transaction.
Bond issue data
- Volume: €597,2 million (fully placed);
- Average expected duration: 4,3 years;
- Spread on 3-month Euribor: 0,6%;
- Rating: Aa2 (sf) Moody's, AA DBRS.
