Intesa Sanpaolo successfully places GBP 600m SNP Green Bond

The image accompanying the News on the placement of the new Senior Non Preferred Green issue intended for the market in Sterling, for a nominal value of £600 million, portrays the new Intesa Sanpaolo skyscraper in Turin designed by Renzo Piano and certified LEED Platinum for sustainability

Intesa Sanpaolo has successfully placed a new Senior Non Preferred Green issue for the Sterling market for a nominal value of £600 million, with the largest-ever order book and size achieved by an Italian bank issuer on the UK market.

The transaction is intended to finance/refinance all the green categories described in Intesa Sanpaolo's Green, Social and Sustainability Bond Framework.

Orders reached £1.2bln, garnering the interest of almost 100 investors, allowing for a tightening from the initial spread (IPTs equal to G + 300/310bp) down to Gilt + 285bp.

The bond has a 6-year maturity with the possibility of being called in the 5th year, has been issued at a level equal to Gilt + 285bp, coupon of 6.50% and value date 14 March.

The order book was highly diversified, with approximately 88% of investors dedicated to the ESG sector. In details:

  • 82% Asset Manager/Fund Managers
  • 8% Hedge Funds
  • 5% Banks and Private Banks
  • 3% Insurances and Pension Funds

The geographical distribution of orders:

  • 72% United Kingdom and Ireland
  • 9% Germany
  • 6% France
  • 4% Switzerland

The joint book runners – in addition to Intesa Sanpaolo’s IMI CIB Division – were Morgan Stanley, NatWest Markets and J.P. Morgan.