(Alliance News) - Mediobanca Spa announced Monday that it has successfully completed the placement of a covered bond with a five-year maturity, for a total amount of EUR750 million.

This is Italy's first 2024 covered bond, in a market environment marked in recent quarters by a high number of covered bond issues by Italian banks.

The covered bond, priced with a coupon of 3.25 percent and a yield equal to mid swap +65 bps, recorded orders of up to EUR1.4 billion during the placement, which allowed the initial indications of mid swap +70 bps yield to be reduced and the target size of EUR750 million to be reached.

This placement recorded 70 percent of orders from abroad, with all major European investors in attendance, "further testifying to Mediobanca's established role as a continent-wide issuer," the bank said.

Francesco Saverio Vinci, firettore generale of Mediobanca, said, "The success of this new issue, 70% subscribed by foreign investors, is further evidence of the market's trust and appreciation for Mediobanca and the growth prospects outlined in the "One Brand One Culture" strategic plan to 2026. It is a result that further strengthens our determination to pursue the set goals."

"The results of this new issuance, in the current macroeconomic context, confirm the importance of a flexible approach in diversifying funding sources. The issuance of the first Italian covered bond in 2024 is a clear expression of this strategy, representing an important step in the bank's growth path."

Mediobanca's stock closed Monday up 0.3 percent at EUR11.35 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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