(Alliance News) - Banca Popolare di Sondrio Spa announced Tuesday that it has placed a EUR500 million, six-year senior preferred green bond with an option for early redemption on June 4, 2029.

The transaction, made under the EUR5 billion Euro Medium Term Notes program, aims to finance and refinance green projects that comply with the Green Bond Framework and follows similar ones in July 2021 and September 2023.

The placement attracted considerable interest from around 150 investors with foreign demand - in particular, from French and British asset managers - exceeding 50 percent and final requests coming in at over EUR1.6 billion. The spread, initially announced as 165 basis points above the five-year mid-swap rate, was consequently reduced to the final level of 130 basis points.

The bond was issued at a price of 99.6 and pays a fixed annual coupon of 4.125 percent.

The expected ratings are 'BBB-' from S&P Global Ratings, 'BBB-' from Fitch Ratings, and 'BBB Low' from Morningstar DBRS.

BNP Paribas and Mediobanca acted as global coordinators while BNP Paribas, Equita, JPMorgan, Mediobanca, Santander and UBS Investment Bank acted as joint bookrunners.

Pop di Sondrio's stock closed Tuesday down 0.5 percent at EUR7.13 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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