(Alliance News) - BPER Banca Spa announced that, following the conclusion of book-building activities, it has successfully completed a EUR500 million Additional Tier 1 bond issue with perpetual maturity and callable "callable" from the fifth year.

The bonds, intended for institutional investors, were placed at par with a fixed coupon of 8.375% until July 16, 2029, payable semi-annually; should the Bank decide not to exercise the early redemption option, the coupon would be recalculated on the basis of the 5-year euro swap rate, as measured at the time of the recalculation date, increased by a spread of 595 bps and would remain fixed for the next 5 years, until the next recalculation date.

The Additional Tier 1 bond issue recorded orders in excess of EUR3.2 billion during the placement, which allowed the initial yield indications to be reduced from 9.00% to 8.375% and the target size of EUR500 million to be reached.

The final allocation was mainly to investment funds with 80% and private banking with 15%.

The geographic distribution sees the presence of foreign investors-including the United Kingdom with 50%, France with 11%, and Germany with 8%-and Italians, with 18%.

Coupon payment is fully discretionary and subject to certain limitations.

In addition, the Additional Tier 1 bond issue provides for a temporary reduction in par value if the Bank's and/or Group's CET1 ratio falls below 5.125 percent.

Barclays acted as Sole Structuring Advisor, Global Coordinator and Joint Bookrunner while Deutsche Bank, IMI-Intesa Sanpaolo, Mediobanca, Morgan Stanley and UBS acted as Joint Bookrunners.

BPER Banca closed Tuesday's session 3.8 percent in the red at EUR3.15 per share.

By Maurizio Carta, Alliance News reporter

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