Banca Mps: successful issuance of the first Social European Covered Bond (Premium) for eur 750 million and with a 6-year maturity
Demand from italian and international investors above eur 1.2 billion
Siena, 9 July 2024 - Banca Monte dei Paschi di Siena has successfully completed the placement of a EUR 750 million, 6-year (16 July 2030) Social Conditional Pass Through ("CPT") European Covered Bond to Italian and foreign institutional investors.
This is the Bank’s first issuance of a Social European Covered Bond (Premium). Proceeds from the issuance of the Social Covered Bond will be used to support social sustainability projects by financing and/or refinancing Eligible Social Assets as defined under the Green, Social and Sustainability Bond Framework approved by the Bank in June 2024. The framework has obtained a Second Party Opinion from DNV, an independent entity with expertise in sustainability, social and environmental matters.
The transaction is part of the Bank's strategy to consolidate its commitment to social and environmental sustainability by engaging all business areas of the MPS Group in ESG initiatives.
The issuance, with an expected rating of Aa3 / AA- / AA (Moodys/Fitch/Morningstar DBRS) attracted strong interest from Italian and foreign investors with orders exceeding EUR 1.2 billion, allowing the coupon to be set at 3.3750% with a re-offer price of 99.445%, corresponding to a spread of 65 basis points over the 6-year mid-swap rate, a lower spread than the Bank's previous 5-year covered bond issuance.
The geographical distribution of the demand shows widespread domestic and international interest, with Italy at 36%, UK at 29% and other European countries at 35%.
Banca Monte Dei Paschi di Siena, BNP Paribas, HSBC, LBBW, Mediobanca, NatWest Markets and Santander acted as Joint Bookrunners.
The bond will be listed on the Luxembourg Stock Exchange.
