Intesa Sanpaolo issues €1.25 bln perpetual AT1 bond

The image that accompanies the News on the AT1 Subordinated bond issue for institutional investors, portrays the new Intesa Sanpaolo skyscraper in Turin designed by Renzo Piano and LEED Platinum certified for sustainability

Intesa Sanpaolo has successfully placed on the international institutional market an Additional Tier 1 perpetual bond for a nominal amount of €1.25 billion, with a coupon of 9.125%, payable every six months.

The issue immediately attracted a lot of interest, reaching €2 billion orders in the first hour from launch and closing at around €4.7 billion.

The new issue represents the first Italian AT1 of 2023 as well as one of the largest issues of 2023 by financial issuers.

The size of the order book, the largest in the market since March 2022, allowed for a tightening of 50 basis points from the initial indications of 9.625% area.

The transaction was launched at the same time of a tender offer on Additional Tier 1 securities outstanding for €750 million, with a view to proactively manage financial instruments and optimise the structure and cost of capital.

The allocation of the order book saw the participation of more than 250 investors divided as follows:

  • 81% Fund Managers and Hedge Funds
  • 7% Banks and Private Banks
  • 6% Corporates
  • 4% Insurances
  • 2% Other

with a geographical distribution that highlights 53% from the United Kingdom, 19% from France, 11% from Italy, 4% from Germany and Austria, 4% from the Nordics, 3% from Switzerland, 3% from Benelux, 2% from Spain and 1% Other.

Banks that participated in the placement were - in addition to the IMI CIB Division of Intesa Sanpaolo - BofA Securities and Morgan Stanley as Global Coordinators, Barclays, Citi, Deutsche Bank, Goldman Sachs and UBS.