Banco Bpm has successfully closed the first placement of Additional Tier 1 bonds for a total of 300 million euro. The issue was intended for institutional investors. The Bank specifies that the titles are perpetual and can be recalled starting from 18 June 2024. In case of non-call, the call can be exercised every 5 years.
The semi-annual, non-cumulative coupon is 8,75%, slightly lower than the first indication of 8,875%, thanks to the high level reached by demand.
In the event that the early repayment option envisaged for 18 June 2024 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 determined at the time of the recalculation date. This new coupon will remain fixed for the next 5 years (until the next reset date). The payment of the coupon is entirely discretionary and subject to certain limitations.
The investors who participated in the operation are mainly funds (about 88% of the total), while the geographical distribution was mainly international (67% of which about 40% from the UK).
The security includes a mechanism for the temporary reduction of the nominal value if the primary tier 1 capital ratio of the Bank or the Group (CET1 Ratio) falls below 5,125%
Barclays and Goldman Sachs acted as Global Coordinators and Joint Bookrunners, with Banca Akros, BNP Paribas, JP Morgan and Unicredit acting as Joint Bookrunners.
