INTESA SANPAOLO LAUNCHES €1.25 BILLION 10-YEAR BENCHMARK OBBLIGAZIONI BANCARIE GARANTITE BACKED BY MORTGAGES, SPREAD 200 bp, 106 bp BELOW BTP. GROUP’S STRONG FUNDING CAPABILITY CONFIRMED. THE DEMAND, ABOUT 83%
OF WHICH DERIVES FROM FOREIGN INSTITUTIONAL INVESTORS, WAS EQUAL TO OVER €5 BILLION
(OVER 4 TIMES THE €1.25 BILLION TARGET)
Turin - Milan, November 22nd 2012 - Today, Intesa Sanpaolo has launched a €1.25 billion Obbligazioni Bancarie Garantite (OBG) issue targeted at institutional markets to optimise its treasury management.
It is a 10-year, fixed-rate issue under the €20 billion OBG Programme mostly backed by residential and commercial mortgages assigned by Intesa Sanpaolo.
The demand, about 83% of which derives from foreign institutional investors, was equal to over €5 billion (over 4 times the €1.25 billion target).
This issue confirms the Group’s strong funding capability. In the first ten months of the year, five senior Eurobond issues totalling 6 billion euro and one OBG issue for one billion euro had already been placed on international markets with a total demand - 75% from foreign investors - exceeding the issuance target by 180%. Prior to this issue, medium-long-term funding had already exceeded total 2012 maturities, with approximately 23 billion euro placed, of which approximately 14 billion euro were retail placement.
The 3.625% coupon is payable in arrears on December 5th of each year.
The re-offer price is 99.03%.
Considering the re-offer price, the yield to maturity is 3.743% per annum. The total spread for the investor is equal to the mid-swap rate plus 200 basis points, 106 basis points below the BTP of equivalent maturity.
Settlement is due on December 3rd 2012.
Minimum denomination of the bond issue is 100 thousand Euro and multiples.
The bond is not offered to the Italian retail market; it is distributed to international institutional investors and financial institutions. It will be listed on the Luxembourg Stock Exchange and, as usual, traded Over-the-Counter.
Banca IMI, Barclays, Deutsche Bank and Société Générale Corporate & Investment Banking act as joint lead managers for the placement of the bond.
This communication does not constitute an offer or an invitation to subscribe for or purchase any securities. The securities have not been and will not be registered under the United States Securities Act of 1933 (as amended) (the "Securities Act"). The securities may not be offered, sold or delivered within the United States or to “U.S. persons” (as defined in Regulation S under the Securities Act) as part of their initial offering. The securities may be initially offered and sold only outside the United States in reliance on Regulation S under the Securities Act and subsequent resales may be made only in accordance with applicable law. Copies of this announcement are not being made and may not be distributed or sent into the United States, Canada, Australia or Japan.
This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) (a) to (d) of the Order (all such persons together being referred to as “relevant persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
Last updated 22 November 2012 at 18:02