The puzzle is complete. Yesterday evening, the Minister of the Treasury, Pier Carlo Padoan signed the decree on the restoration of the former subordinate bondholders of Monte dei Paschi. Shortly after, the registration by the Court of Auditors also arrived.
Two steps that made it possible to officially kick off the repayments of former savers who, after subscribing 2,1 billion euros of the bond in 2018, underwent the forced conversion of the bond into shares due to the now famous "burden sharing" ” applied to try to save the Tuscan institute. The exchange offer started this morning, one day late, and will continue until 16.30 pm on November 20, 2017. The date on which the offer will be settled will be November 24, 2017.
The Ministry of the Economy (MEF), the Sienese bank's new majority shareholder, will purchase those shares in exchange for a new, more guaranteed bond and, in doing so, will rise from the current 52,2% to almost 67,76% of the share capital. mps.
Going into detail, based on what was communicated by the Banca di Rocca Salimbeni, the offer is addressed «to the holders of the ordinary shares (ISIN code IT0005276776) deriving from the conversion of the subordinated bond loan called “€2.160.558.000 Variable rate Subordinated Upper Tier II 2008 – 2018” (ISIN Code IT0004352586)».
The transaction concerns 237,69 million shares, corresponding to 20,84% of MPS' share capital. The potential audience is instead around 40 savers
The former bondholders who decide to join will receive a senior bond instead of the shares deriving from the conversion, which will be issued for a maximum of 1,5 billion euro, with a share valuation of just under 6,5 euro.
The new bond will have a yield in line with that of the bank's non-subordinated bonds currently on the market. Deadline: 15 May 2018.
