(Alliance News) - Mediobanca Spa announced on Monday that it has successfully completed the placement of a new 10.25-year Tier 2 subordinated bond - maturing in April 2034 - with a call option to April 2029, for a total amount of EUR300 million.

The bond attracted broad and diverse demand in the market, allowing the initially disclosed yield to be revised - 305 bps above mid-swap - and set at 275bps.

Orders in excess of EUR1.5 billion were recorded during the placement, amounting to more than five times the EUR300 million target.

The new bond, which represents Mediobanca's first issue in dematerialized form centralized with Montetitoli aimed at institutional investors, will guarantee a coupon of 5.25 percent and allows, with the issue of the senior non-preferred in September 2023, the completion of 50 percent of the plan of issuance of capital instruments - debt capital strategy - envisaged by the strategic plan to 2026 "One Brand One Culture."

"With this issue, Mediobanca consolidates its position among Italian banks in terms of efficiency in pricing bond instruments, also confirming investors' confidence in the new three-year plan," the bank said.

The distribution of the bond was attended by major foreign institutional investors over 70 percent with orders in particular from the UK, Ireland, Germany, Austria and Switzerland accounting for 40 percent, and Italians with orders accounting for 28 percent.

"The performance of the issue once again confirms investors' appreciation and Mediobanca's ability to diversify its funding sources."

Mediobanca's stock closed Monday down 0.1 percent at EUR11.27 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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