BANCA MPS SUCCESSFULLY COMPLETES EUR 500 MILLION TIER 2 BOND ISSUANCE MATURING IN OCTOBER 2035
DEMAND FROM BOTH ITALIAN AND INTERNATIONAL INSTITUTIONAL INVESTORS FOR OVER EUR 1.25 BILLION
Siena, 25 June 2025 – Banca Monte dei Paschi di Siena (the “Bank” or “BMPS”) has successfully completed the placement of a EUR 500 million Tier 2 subordinated bond maturing in October 2035, with an early redemption option in October 2030.
The transaction marks the Bank's return to the Tier 2 issuance market after a five-year absence and is part of its broader capital optimisation strategy.
Confirming strong interest in the Bank from both Italian and international institutional investors, orders grew rapidly throughout the morning, exceeding EUR 1.25 billion.
The bond was priced at 99.769% and pays an annual coupon of 4.375% until October 2030. If the Bank does not exercise the early redemption option, the coupon will be reset based on the 5-year euro swap rate on the reset date plus a spread of 215 basis points.
The bond, with an expected rating of Ba2 / BB- / BB (Moody's / Fitch / Morningstar DBRS), attracted a broad base of institutional investors. The geographical distribution reflects widespread interest both domestically and internationally, with the UK and Ireland accounting for 43%, Italy 27%, France 15%, and other countries 15%.
Banca Monte dei Paschi di Siena SpA, Barclays, Citi, IMI-Intesa Sanpaolo, J.P. Morgan, Morgan Stanley, NatWest and UBS acted as Joint Bookrunners in the transaction.
