Intesa Sanpaolo has launched a double senior bond issue for a total of USD 3,5 billion intended exclusively for the American and Canadian markets.
These are two fixed-rate bonds issued under Intesa Sanpaolo's US$ Medium Term Notes Programme: the first, over 3 years, for 2 billion and the second, over 5 years, for 1,5 billion. Bonds placed on the US market are exempt from registration pursuant to Section 3(a)(2) of the US Securities Act as they are technically counter-guaranteed by the New York branch of Intesa Sanpaolo; the portion intended for the Canadian market was placed in the provinces of Ontario and Quebec on the basis of the exemptions applicable to initial placements reserved for professional investors only.
As regards the 3-year bond, the six-monthly coupon, payable in arrears on 15 January and 15 July of each year starting from 15 July 2013 until maturity, is equal to 3,125% per year (first short coupon from 16 January 2013 to July 15, 2013). The re-offer price was set at 99,966%.
Taking into account the re-offer price, the yield to maturity is 3,137% per annum and the total spread for the investor is equal to the yield on a 3-year US Treasury bond + 275 basis points per annum. Instead, as regards the 5-year bond, the six-monthly coupon, payable in arrears on 16 January and 16 July of each year starting from 16 July 2013 until maturity, is equal to 3,875% per year. The re-offer price was set at 99,851%.
Taking into account the re-offer price, the yield to maturity is 3,908% per annum and the total spread for the investor is equal to the yield on a 5-year US government bond +310 basis points per annum. The settlement date for both notes is scheduled for January 16, 2013. The maturity date for the 3-year note is scheduled for January 15, 2016. The maturity date for the 5-year note is scheduled for January 16, 2018. The minimum denominations for both issues are $200 plus an additional $1.000.
The lead companies in charge of distributing the securities are Banca IMI, Goldman Sachs, JP Morgan Securities Inc. and Morgan Stanley. The ratings assigned to Intesa Sanpaolo's senior long-term debt are: Baa2 by Moody's, BBB+ by Standard & Poor's and A- by Fitch.
