Intesa Sanpaolo successfully places $2.75bln dual tranche issue on the US market

Intesa Sanpaolo has placed a dual tranche bond on the US market for a total of $2.75 billion, collecting orders for over $10 billion: it is the largest non-Euro currency Senior Non Preferred bond ever issued by Intesa Sanpaolo and the largest order book for a 30-year tranche for a European Yankee bank since 2014.

The issue in detail:

• Senior Preferred 10-year bullet with a nominal value of $1.25 billion, at a level equal to US Treasuries + 290 bps and a fixed rate coupon of 6.625%
• Senior Non Preferred 31-year with the possibility of being called in the 30th year, for a nominal amount of $1.5 billion (31NC30), at a level equal to US Treasuries + 390 bps and a fixed rate coupon of 7.778%

Both tranches have a value date of 20 June 2023.

The total amount of orders equaled that of last November, which until then had represented the largest order book ever achieved for an Intesa Sanpaolo dual tranche Yankee issue.

The issue, intended for the US market, attracted more than 240 investors, including from Europe and Asia, divided as follows:

Senior Preferred tranche:

• 89% Fund Managers
• 7% Insurance and Pension Funds
• 2% Banks and Private Banks

with the majority coming from the United States (69%), 30% from EMEA countries and 1% from Asia.

Senior Non Preferred tranche:

• 94% Fund Managers
• 4% Insurance and Pension Funds
• 2% Banks and Private Banks

with the majority coming from the United States with 74%, and 26% from EMEA countries.

Joint book runners - in addition to the IMI CIB Division of Intesa Sanpaolo – were Barclays, Bank of America, Goldman Sachs, HSBC Securities, J.P. Morgan, Morgan Stanley, TD Securities.

Photo credits: Guglielmo Bagnolini