Intesa Sanpaolo successfully places GBP 600m SNP Green Bond

Intesa Sanpaolo has successfully placed a new Senior Non Preferred Green issue for the Sterling market for a nominal value of £600 million, with the largest-ever order book and size achieved by an Italian bank issuer on the UK market.

The transaction is intended to finance/refinance all the green categories described in Intesa Sanpaolo's Green, Social and Sustainability Bond Framework.

Orders reached £1.2bln, garnering the interest of almost 100 investors, allowing for a tightening from the initial spread (IPTs equal to G + 300/310bp) down to Gilt + 285bp.

The bond has a 6-year maturity with the possibility of being called in the 5th year, has been issued at a level equal to Gilt + 285bp, coupon of 6.50% and value date 14 March.

The order book was highly diversified, with approximately 88% of investors dedicated to the ESG sector. In details:

• 82% Asset Manager/Fund Managers
• 8% Hedge Funds
• 5% Banks and Private Banks
• 3% Insurances and Pension Funds

The geographical distribution of orders:

• 72% United Kingdom and Ireland
• 9% Germany
• 6% France
• 4% Switzerland

The joint book runners – in addition to Intesa Sanpaolo’s IMI CIB Division – were Morgan Stanley, NatWest Markets and J.P. Morgan.