Intesa Sanpaolo offers 4 bonds to retail and institutional investors with a good premium and requests are flying: 5,3 billion

The issuer has a good rating, the yield is quite attractive: requests could only be very high. Intesa San Paolo filled up yesterday, satisfying institutional investors e retail savers with 4 distinct issues, with different maturities and yields, from 4,75% to 5,7%, a prize compared to the levels of issues already on the market: under these conditions, despite a market that is not exactly rewarding these days, investors have plunged into it, requesting overall 5,3 billion.
“I am very positively surprised by the substantial requests received for Intesa SanPaolo issues: I did not expect such a high demand, especially as rates are rising these days” says Giacomo Alessi, independent bond analyst. “Intesa has offered a consistent premium over the market, thus attracting many investors. After all, at a time of high interest rates, the banks, having greater margins, can afford it”.

For institutional senior non-preferred green bonds, at 5 and 10 years

At the institutional investors (minimum denomination €150.000) Intesa Sanpaolo, with the Bookrunners BBVA, BNP Paribas, BofA, Citi, Commerzbank, IMI Intesa Sanpaolo (B&D), Morgan Stanley and UBS, offered two senior non-preferred green bonds, one with expiration at 5 years old, the other to 10 years old, which will be traded on the Luxembourg Stock Exchange in accordance with Italian law.
The shortest, deadline 8 March 2028, opened the order book with guidance at 190 basis points above the midswap curve before tightening to 170 points, with a good prize compared to the closest Intesa bond, 2027, which it quotes 132 bps above the swap curve. The yield of the new bond is 5,105% and the 5% coupon. It was placed at a price of 99,629 per 1,5 billion against more than double requests: 3,2 billion. A recall by the issuer (call) at par is expected for this bond in 2027.
The second bond at 10 years (expiring March 8, 2033) was offered to institutions for 750 million and has seen requests forr 2,1 billion. At the opening of the books, a guidance of 270 bp above the midswap curve was proposed to then close at 255 points, also in this case offering a premium compared to the market: the most similar Intesa bond is 2031 which is listed on the market 207 bp. The bond, priced at 99,254, offers a yield of 5,725% and a coupon of 5,625%.

For retail, two 2-year bonds in US and Australian dollars

For the retail saver, Intesa SanPaolo instead offered two bonds a two years for 200 million each in currency: one denominated in dollari Usa (ISIN: XS2591231191, expiry 24/02/2025), the second an emission in Australian dollars (ISIN: XS2591229534, 24/02/2025), both listed on the Mot.
Intesa already has 53 bonds on the market in 6 different currencies: yen, pounds, US and Australian dollars, euros and Swiss francs. “It is a good opportunity for the retail investor to have some of the most important foreign currency issues available, issued by a reliable name” says Alessi.
The bond in US dollars provides for the payment of gross fixed annual coupons of 5,40% payable semi-annually, with a yield of 5,50%, equal to 70 bp above the corresponding government bond. The Australian dollar bond has a fixed gross annual coupon of 4,65%, with a yield of 4,75%, or 110 bp above the corresponding government bond. The minimum investment size for retail is, respectively, 2.000 US dollars and 2.000 Australian dollars.