Banco Bpm has successfully concluded the issue of a new Tier 2 subordinated bond with a 10-year maturity, repayable in advance after five, for an amount of 350 million euro. The bond was issued at par and pays a fixed coupon of 4,25% for the first 5 years. If the institute does not exercise the early repayment option, the coupon for the subsequent period up to maturity will be recalculated on the basis of the 5-year swap rate at the end of the fifth year, increased by a spread equal to 467,2 bps.
The bond, reserved for institutional investors, was issued as part of Banco Bpm's Euro Medium Term Notes Programme. The expected ratings are B1 (Moody's) and BB (DBRS). The investors who participated in the operation are mainly mutual funds (about 61% of the total) and banks (20%), while the geographical distribution sees a prevalence of Italy (about 61%) and the United Kingdom and Ireland (20%).
Credit Agricole Corporate and Investment Bank, Goldman Sachs International, Morgan Stanley, HSBC Bank plc, UBS Europe SE and Banca Akros SpA acted as Joint Bookrunners.
Meanwhile, the Bank has announced that it will be assisted by head hunter Egon Zehnder for the definition of its list of candidates for the renewal of the board. Banco Bpm's board of directors wrote in a note that it had appointed Egon Zehnder "to support the corporate bodies in the selection of potential candidates for the position of members of the board of directors, which will be elected by the next shareholders' meeting, in view of the possibility to present the List of the Board, envisaged by article 20.4.2 of the Articles of Association as well as to replace the directors who have left office in the meantime”.
