Where's Banca launched a Tier 2 subordinated bond, with a 10-year maturity and a 5-year repayment option, for an amount of 300 million euro. Demand was very strong, exceeding supply by more than four times, allowing the spread to be reduced from the initial level of 510bps to the final level of 475bps above the 5-year mid-swap.
The issue has been allocated to over 150 investors, most of whom came from Italy (34%), followed by the UK (23%), France (15%), Germany & Austria (8%), Switzerland (7%) and others.
The underwriting by investment funds (65%), banks and private banks (24%) prevailed, followed at a great distance by insurance companies and pension funds (6%), official institutions (4%) and others.
The settlement date of the transaction will be July 12, 2019.
The issue price of the bond is 99,613% and the fixed coupon is 4.375%, equivalent to a spread of 475 basis points above the 5-year mid-swap rate. The coupon will be recognized in arrears on July 12 of each year starting from July 12, 2020.
The bond, reserved for institutional investors, is part of the UBI Banca Emtn Program and will be listed on the Irish Stock Exchange.
The expected ratings of the bond are as follows: Ba3 (Moody's), BB (S&P), BB+ (Fitch), BBH (DBRS).
Banca Imi, Goldman Sachs International, Société Générale and UBI Banca acted as joint bookrunners.
