Banco Bpm successfully completed a new Tier 2 subordinated issue, with a ten-year maturity, repayable in advance after five years, for an amount of 500 million euro. The security was issued at par and pays a fixed coupon of 5.% for the first 5 years: if the issuer decides not to exercise the early repayment option, the coupon for the subsequent period up to maturity would be recalculated on the basis of the 5-year swap rate at the end of the fifth year, increased by a spread equal to 542 bps.
The security, which is reserved for institutional investors, was issued under the issuer's Euro Medium Term Notes Program and, due to its subordinated status, has an expected rating of B1 (Moody's) and BB (DBRS). The investors who participated in the operation are mainly asset managers (63%), banks (24%) and hedge funds (11%), while the geographical distribution sees the prevalent presence of foreign investors (including the United Kingdom and Ireland with 31%, France with 10% and Switzerland with 6%), with the Italians at 48%.
The transaction contributes to the further efficiency of Banco Bpm's already robust capital structure. Banca Akros (related party of the issuer), Barclays, Credit Agricole, Goldman Sachs, Intesa Sanpaolo-Banca IMI, Morgan Stanley acted as Joint Bookrunners.
