INTESA SANPAOLO PLACES 3.5 BILLION DOLLAR ON THE U.S. MARKET WITH
THE LAUNCH OF A 3-YEAR AND 5-YEAR DUAL-TRANCHE BOND ISSUE
- Order book of approximately U.S.$ 11 billion with more than 430 orders received overall for the two tranches
- The order book is almost 6 times the benchmark size initially indicated to the market by Intesa Sanpaolo for the two issues
- Order book includes investors from North America (approximately 75%), EMEA (approximately 17%), Asia (approximately 5%) and LATAM (approximately 3%)
- The largest senior debt placement by an Italian financial issuer on the U.S.$ market
- The largest public issue by an European financial issuer on the U.S.$ market since January 2011
- Average pricing in Euro equal to approximately mid swap + 230 basis points, no extra premium over the cost of similar issues on the Euro market
- “This transaction and the relative pricing is a strong vote of confidence by U.S. institutional investors; it reflects the appreciation for the financial strength and the positioning of the Bank; it is also a positive sign for the Italian banking system.” says Enrico Cucchiani, CEO
Turin - Milan, January 8th 2013 – Intesa Sanpaolo has launched a senior dual-tranche bond issue targeted exclusively at the U.S. and Canadian markets for a total amount of U.S.$ 3.5 billion.
This dual tranche is composed of two bonds issued under the U.S.$ Medium Term Notes Programme of Intesa Sanpaolo: the first one is a 3-year, fixed-rate bond issued for an amount of U.S.$ 2 billion, the second one is a 5-year, fixed-rate bond issued for an amount of U.S.$ 1.5 billion. The bonds placed on the U.S. market are exempt from registration under Section 3(a)(2) of the U.S. Securities Act as technically guaranteed by the New York branch of Intesa Sanpaolo; the part targeted at the Canadian market has been placed in the provinces of Ontario and Quebec on the basis of the exemptions applicable to initial placements reserved only to institutional investors (private placement).
With reference to the 3-year fixed-rate bond, the coupon, payable semi-annually in arrears on every 15 January and 15 July of each year from and including 15 July 2013 up to the maturity date, is equal to 3.125% per annum (first short coupon from 16 January 2013 to 15 July 2013).
The re-offer price is 99.966%.
Considering the re-offer price, the yield to maturity is 3.137% per annum and the total spread for the investor is equal to the yield of the 3-year U.S. Treasury Bill plus 275 basis points p.a..
With reference to the 5-year fixed-rate bond, the coupon, payable semi-annually in arrear on every 16 January and 16 July of each year from and including 16 July 2013 up to the maturity date, is equal to 3.875% per annum.
The re-offer price is 99.851%.
Considering the re-offer price, the yield to maturity is 3.908% per annum and the total spread for the investor is equal to the yield of the 5-year U.S. Treasury Bill plus 310 basis points p.a..
Settlement for both issues is due on 16 January 2013.
Maturity for the 3-year issue is due on 15 January 2016.
Maturity for the 5-year issue is due on 16 January 2018.
The minimum denomination of the bond issue is U.S.$ 200,000 and U.S.$ 1,000 thereafter.
Banca IMI, Goldman Sachs, JP Morgan Securities Inc. and Morgan Stanley are the joint lead managers of the bond offering.
The ratings assigned to Intesa Sanpaolo’s senior long-term debt are: Baa2 by Moody’s, BBB+ by Standard & Poor’s and A- by Fitch.
The distribution of this press release, directly or indirectly, in or into the United States of America, Canada, Australia or Japan is prohibited. This press release (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States, Canada, Australia or Japan or any other jurisdiction where such an offer or solicitation would require the approval of local authorities or otherwise be unlawful (the "Other Countries"). The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or pursuant to the corresponding regulations in force in the Other Countries and may not be offered or sold in the United States or to U.S. persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. Intesa Sanpaolo does not intend to register any portion of the offering of the securities in the United States or to conduct a public offering of the securities in the United States.
This communication is being distributed only to and is directed only at (a) persons outside the United Kingdom, (b) persons who have professional experience in matters relating to investments, i.e., investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), and (c) high net worth companies, unincorporated associations and other bodies to whom it may otherwise lawfully be communicated in accordance with Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). The securities are available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be available only to or will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents.
Investor Relations
+39.02.87943180
investor.relations@intesasanpaolo.com
Media Relations
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stampa@intesasanpaolo.com
Last updated 8 January 2013 at 17:33
