Banca Popolare di Sondrio S.C.p.A. (Fitch rating BBB-, stable outlook) has successfully priced its inaugural Senior Preferred Unsecured bond for an amount of Eur 500mln.
The transaction has been marketed via a roadshow which involved over 50 Italian and international investors. The deal attracted granular demand from over 110 institutional investors for an amount over Eur 800mln.
The bonds have a 2.375% coupon and have been priced at 99.846%, which is equivalent to a 2.408% yield.
In terms of geographical distribution, the transaction was allocated as follows: Italy (76%), UK & Ireland (5%), Luxembourg (4%), Scandinavia (4%), France (3%), Switzerland (3%) and others (5%).
Breakdown by investor type has seen bank treasuries taking 51% of the bonds, followed by fund managers (34%), central banks & official institutions (6%), insurers and private banks (4% each) and others (1%).
The bonds, reserved to institutional investors, are issued off Banca Popolare di Sondrio S.C.p.A EMTN Programme dated 6th March 2019, and will be listed on the Luxembourg Stock Exchange with an expected rating of BBB- (Fitch) and ISIN XS1975757789.
Banca IMI, J.P. Morgan, Morgan Stanley, Natixis, Société Générale and UniCredit have acted as Joint Bookrunner in the transaction.
Sondrio, 28th March 2019