Press Release
BANCA MPS SUCCESSSFULLY PLACES A EUR 750 MILLION SENIOR PREFERRED BOND
DEMAND FOR APPROX. EUR 2.4 BILLION FROM A BROAD BASE OF ITALIAN AND INTERNATIONAL PRIMARY INSTITUTIONAL INVESTORS
Siena, 20 November 2024 - Banca Monte dei Paschi di Siena S.p.A. (the “Bank” or “BMPS”) has successfully completed the issuance of a new EUR 750 million Senior Preferred Unsecured Bond with a maturity of six years (due 2030) and an early redemption option after five years.
The transaction was well received by the market, attracting orders of up to 2.4billion from a broad base of Italian and international primary institutional investors, confirming the growing interest in the Bank thanks to the significant improvement in its results.
On the back of the strong demand, the final coupon has been set at 3.625% with a re-offer price of 99.565%, representing a spread of 145 bps, below the initial indication (180 bps over mid-swap), 60bps tighter than the previous 5-year Senior Preferred Issuance in March 2024, having a shorter maturity, further confirming the ongoing funding cost reduction.
Demand was well diversified in terms of both investor type and geography, with orders coming mainly from the UK & Ireland (49%), Italy (30%), France (9%) and Germany, Austria and Switzerland (5%). With the new Senior Preferred Unsecured Bond issued under the Euro Medium Term Notes Programme, the Bank has consolidated its ability to access the international market, implementing the funding plan outlined in its 2024-2028 Business Plan.
The Bond’s ratings are expected to be Ba2 from Moody's, BB+ from Fitch and BB (High) from Morningstar DBRS, and the Bond will be listed on the Luxembourg Stock Exchange.
The joint lead manager and bookrunners for the transaction are BMPS, BBVA, BofA Securities, Equita SIM, Goldman Sachs International, Mediobanca and UBS Europe SE.
