Intesa Sanpaolo has launched a one billion euro unsecured bond maturing in August 2023. Orders exceeded 1,75 billion. The yield stood at 2,153%, equal to 188 basis points on the midswap rate. The premium was lower than the first indications in the 200 bp area and was placed in the low part of the guidance in the 190 bp area.
The operation was managed by Banca IMI, Deutsche Bank, Jp Morgan, Société Generale Cib and Ubs. The bond has an expected rating of Baa1 by Moody's, BBB by S&P, BBB by Fitch, and BBB(high) by Dbrs.
Intesa's last senior bond issue dates back to 12 March, a week after the elections, when the market tended to exclude the birth of an executive resulting from an alliance between M5S and Lega. Intesa had then issued a 1,25 billion euro ten-year senior bond with a premium of 77 basis points on the midswap rate, equal to a yield of 1,831%. The title today offers a yield of 3,186%, against 3,092% of the ten-year BTP.
The Italian Treasury is also expected to launch a new five-year benchmark next week, resulting in increased pressure on that segment of the curve. On 12 March the Italian 2-year bond offered a yield of around 140% and the spread on the similar maturity of the Bund was below 277 basis points, while today it is around XNUMX basis points.
Since the birth of the government, no Italian institution has so far issued bank bonds, with the exception of covered bonds, which have a lower risk profile.
