Bpm bank successfully concluded the issuance of an Additional Tier 1 bond of 400 million euro intended for institutional investors. This was communicated by the Bank, specifying that the securities were mainly allocated to funds (59%), banks (20%) and Hedge Funds (17%). “The operation is part of the efficiency improvement of the capital structure”, reads the note.
The titles are perpetual and may be recalled by the issuer from 21 January 2025, or, thereafter, every 6 months.
The coupon it is semi-annual, non-cumulative and has been pegged at 6,125% (vs. an initial indication of 6,75/6,875%) thanks to the significant volume of orders received from more than 300 institutional investors from Europe and Asia.
The issuer, the note continues, has the option of early repayment envisaged for 21 January 2025: if it is not exercised, a new fixed-rate coupon will be determined by adding the original spread to the 5-year mid swap rate in euro , to be recorded at the time of the recalculation date. In this case, the new coupon will remain fixed for the next 5 years (until the next recalculation date). The payment of the coupon is totally discretionary and subject to certain limitations.
The security includes a mechanism for the temporary reduction of the nominal value should the Tier 1 capital ratio of the Bank or the group (CET1 Ratio) become lower than 5,125%. The security will be listed on the multilateral trading system of the Luxembourg Stock Exchange (Euro MTF).
