Bpm bank has successfully completed a new one Tier 2 subordinated issue, with maturity ten years and three months (June 2034), repayable in advance starting from the fifth year, for a amount equal to 500 million euros.
Bond Banco Bpm: orders equal to 5 times the offer
The security, reserved for institutional investors and issued under the issuer's Euro Medium Term Notes Programme, has seen orders for 2,5 billion euros, equal to 5 times the offer.
The bond was issued at a price equal to 99,617 and pay one fixed annual coupon of 5% until June 18, 2029. “Should the issuer decide not to exercise the early redemption option, the coupon would be redetermined on the basis of the 5-year euro swap rate at the time of the recalculation date, increased by a spread equal to 245 bps”, explains Banco Bpm in a note.
The investors who participated in the operation are mainly asset manager (58%) and banks (16%), while from a geographical point of view, the foreign investors: including the United Kingdom and Ireland with 30%, France with 19%, the Nordic countries with 14% and Germany, Austria and Switzerland with a total of 10%. Italy is at 16%.
Banca Akros (related party of the issuer1), BofA Securities, Citi, Crédit Agricole CIB, HSBC, Santander, Société Générale acted as Joint Bookrunners.
