Bpm bank successfully concluded the issuance of Thursday a 350 million euro bond. The bond is of type Tier 2 subordinate and it expires at ten years old (January 2031), but is repayable five years before maturity.
The title was issued to a price equal to 99,53 euros and pay a fixed coupon of 3,25% for the first 5 years. If the institution decides not to exercise the early repayment option, the coupon for the subsequent period up to maturity would be reset on the basis of the 5-year swap rate at the end of the fifth year, increased by 380 basis points.
The bond, that was reserved for institutional investors, was issued under Banco Bpm's Euro Medium Term Notes Program and is expected to be rated B1 by Moody's and BB by DBRS.
Mainly asset managers (87%) and banks (11%) participated in the operation, with a prevalence of foreign investors (from the United Kingdom 23%, from France 21% and from Germany and Austria 4%) compared to those Italians (42%).
This was communicated by Banco Bpm in a note, specifying that “the operation contributes to further strengthening the Bank's already robust capital structure. Banca Akros, Bank of America, Credit Suisse, Deutsche Bank, HSBC, Unicredit acted as Joint Bookrunners”.
