Credem launches a covered bond of 750 million euro. The placement is envisaged as part of the Guaranteed Bank Bonds program which establishes a maximum amount of 5 billion euro and is entirely backed by Group residential mortgages.
The transaction represents the first covered bond issue placed by an Italian bank since July 2018 and the first public issue denominated in Euro by an Italian bank in 2019.
The bonds – whose expected rating is equal to “Aa3” by Moody's and “AA” by Fitch – have a duration of 5 years and envisage a gross annual coupon of 1,125%, equivalent to the mid swap of the same duration plus a spread of 95 basis points. The entitlement and settlement date of the transaction will be 17 January 2019. The final pricing represents a discount of 84,9 bps with respect to the BTP curve.
“In the face of the 750 million euros placed, orders for over 925 million euros were received from more than 70 investors. The demand from foreign institutional investors was significant: 52% of the issue was placed abroad, mainly in Germany, Austria and Switzerland (26%), the Nordic countries (9%), France (7%), United Kingdom (4%), Benelux (4%) as well as Spain and Portugal (2%). 48% of the issue was placed with Italian institutional investors”, reads the note from the group.
