Mps Bank has launched a T2 subordinated bond. The issue had been requested by the supervision of the European Central Bank as a precondition for the definitive go-ahead to the partial demerger of non-performing loans in favor of Amco. The operation is decisive for reducing the assets of the institute chaired by Patrizia Greco and led by the managing director Guido Bastianini.
Not even 24 hours after the authorization arrived, Montepaschi has found the right market window to fulfill the requirement.
The bond has maturity of 10 years e fixed rate. The final orders, arrived from over 120 investors, have exceeded one billion euros, allowing Monte dei Paschi to increase the amount issued from the 250 million initially announced up to 300 million.
In parallel, the yield it stood at 8,5%, below the 9% initially assumed.
The bond is repayable in advance, upon maturity five years. The decision will be up to Banca Mps, which however, possibly, will have to obtain the prior authorization of the ECB.
On the bond are expected i rating Caa1 (Moody's), CCC+ (Fitch) and B low (DBRS). The issue will be listed on the Luxembourg Stock Exchange.
The placement was managed by Morgan Stanley as "sole active bookrunner", with Barclays and Mps Capital Services as "other bookrunners".
