Milano, 24 November 2006

Banca Intesa has completed a synthetic securitization transaction aimed at covering and actively managing its risk exposure in the aircraft and aeronautic sector.

The project, named Da Vinci Synthetic (“Da Vinci”), launched for a nominal amount of approximately US$650 million, is the second project of the type which the bank has finalized for its own loan portfolio in the sector after Leonardo Synthetic (May 2001), which was redeemed in September this year.

Synthetic securitizations constitute the third generation of structures in securitization inasmuch that it avails of credit derivatives, avoiding the physical transfer of the underlying portfolio of loans (the assets remain on the books), instead simply transferring the credit risk of the relevant loans.

The guarantees supporting the Da Vinci portfolio comprise 128 aircraft which form part of a fleet of 22 airline companies, from 14 countries worldwide, the major portion of which are flag carriers. Of the 128 aircraft, 78% were constructed between 1997 and 2001, 16% between 1992 and 1996 and 5% between 2002 and 2003. The major loans included in the portfolio refer to KLM (approximately US$99 million, 17% of the portfolio total), British Airways (approximately US$91 million, 16%), Alitalia (approximately US$73 million, 13%) and Alaska Airlines (approximately US$46 million, 8%); no other loan exceeds 6% of the portfolio total.

With this transaction, Banca Intesa acquired protection through a credit default swap (arranged by Merrill Lynch) utilizing:

• for the unfunded portion (84% equivalent to approximately US$546 million), a Senior Swap contract underwritten by a prime financer, MBIA, which covers the Da Vinci risk portfolio for the  superior rating or rating equivalent to AA;
• for the funded portion (12%), Da Vinci Synthetic Plc, a Special Purpose Vehicle (“SPV”) domiciled in Republic of Ireland, which issued Notes - distributed in three tranches (rated A, BBB and BB) to international institutional investors only - having a cumulative value of US$78.2 million.

The Notes issued by Da Vinci Synthetic Plc have been divided in the following tranches:

-   Class A Notes (rated A) of US$32.5 million (5%);
-   Class B Notes (rated BBB) of US$26.1 million (4%);
-   Class C Notes (rated BB+) of US$19.6 million (3%).

The structure of the operation implies the opportunity of selling in any time the 4% remaining risk (approximately US$26 million).

Banca Intesa and Merrill Lynch International were the Arrangers and Note Placement Agents of the transaction.

This communication does not constitute an offer to purchase, sell or exchange or the solicitation  of  an  offer to purchase, sell or exchange any securities.  The shares of Banca Intesa S.p.A. may not be  offered or sold in the United States except pursuant to an effective registration statement under the Securities Act or pursuant to a valid exemption from registration.



Banca Intesa
Investor Relations
+39.02.87943180
investorelations@bancaintesa.it 


Banca Intesa
Media Relations
+39.02.87963531
stampa@bancaintesa.it

www.bancaintesa.it