The issuance of 3-year covered bonds (maturity February 10) launched this morning by Ubi Banca has received orders for over 2025 billion euro. Given the solidity of demand, the bank has decided to place securities for 1 billion against the initial target of at least 500 million euro.
The spread was set at 30 basis points above the midswap, further down on both the initial (35-40 points) and intermediate (35 pt) guidance. The placement of the bond is managed by Banca Imi, Barclays, Deutsche Bank, Ing, Lbbw and Mediobanca. The covered bond has Italian prime residential mortgages as its underlying, while the expected rating is A2 by Moody's and A+ by Fitch.
