Today starts the placement of 3 billion bonds issued by Popular Bank of Vicenza with the guarantee of the state. The operation will be handled by Banca IMI and Morgan Stanley. The bonds, which mature on February 3, 2020, have a coupon of 0,5%.
Thanks to the public guarantee, the rating of the bond issue is in line with that of the Italian Republic (BBB+ from Fitch and BBB-high from Dbrs). The expected amount for today's placement is approximately 1 billion euro and the initial price indications by the placers – Banca IMI and Morgan Stanley – are in the area of 65 basis points. Pricing is expected within the day.
During the week a similar operation will concern Veneto Bank. There should be two separate bonds, for a total value of 3,5 billion euros: the first with a nominal value of 1,75 billion, maturing on February 2, 2019 and a coupon of 0,4%; the second, for the same amount, maturing on February 2, 2020 and with a coupon of 0,5%.
«If the saver does not respond well, he loses an opportunity – commented the Undersecretary for the Economy, Pier Paolo Baretta – because it is a bond guaranteed by the state, so the risk is shared».
Meanwhile, the two banks await the response of the ECB on the merger plan sent to Frankfurt a few days ago. The Eurotower will have to indicate the real capital requirement necessary to relaunch the institutions: we are talking about 5 billion euros.
After this step, Popolare di Vicenza and Veneto Banca will evaluate whether or not to ask for State entry with a public intervention in the capital increase (double if before the merger, or single if after the merger).
