Montepaschi today launched a new €10bn 1-year covered bond, the bank's first operation on the bond market since completing its €5bn capital increase last month.
But the response from investors appeared tepid, despite the excellent funding conditions from which even the European banks with the lowest ratings are currently benefiting. According to reports from the lead managers of the transaction, the covered bond, maturing in July 2024 and with a coupon of 2,875%, was priced at a reoffer of 99,597, for a final yield of 148 basis points above the midswap rate.
