Intesa Sanpaolo successfully places Euro Green Bonds for €2.25 bn

Intesa Sanpaolo successfully placed a Euro dual tranche Green Bond for a combined amount of €2.25 billion, collecting total orders of around €5 billion.

This is Intesa Sanpaolo’s third green format transaction in 2023. The issue will finance or refinance all green categories described in Intesa Sanpaolo’s Green, Social and Sustainability Bond Framework.

The issue in detail:

• a 3-year Senior Preferred Green Bond for a nominal amount of €1 bln at a level equal to mid swap + 90 bps, a 4% coupon rate and value date 19 May 2023;
• a 7-year Senior Preferred Green Bond for a nominal amount of €1.25 bln at a level equal to mid swap + 195 bps, a 4.875% coupon rate and value date 19 May 2023.

Final orders of around €2 billion for the short-term tranche enabled a 25-basis point narrowing with respect to the initial price talks of MS+ 115 basis points area. For the 7-year tranche, orders of almost €3 billion made possible a 25-basis point tightening with respect to the initial price talks of MS+220 basis points area.

The order book was very granular, with about 83% coming from ESG-focused investors.

In detail, for the 3-year tranche there were more than 176 investors, divided as follows:

• 78% Fund Managers
• 11% Banks and Private Banks
• 5% Hedged Funds
• 2% Insurance and Pension Funds

The geographical distribution of accounts was 40% from France, 19% from Italy, 16% from Germany and Austria, 9% from the United Kingdom/Ireland, 7% from Benelux, 5% from Spain, 1% from the Nordics and 1% from Switzerland.

For the 7-year tranche, there were 197 investors, divided as follows:

• 73% Fund Managers
• 8% Insurance and Pension Funds
• 7% Hedge Funds
• 6% Banks and Private Banks

The geographical distribution of accounts was 25% from United Kingdom/Ireland, 22% from France, 15% from Germany and Austria, 13% from Benelux, 12% from the Nordics, 6% from Italy and 2% from Spain.

Banks that participated in the placement as joint book runners – alongside Intesa Sanpaolo's IMI CIB Division – were BBVA, BNP Paribas, Commerzbank, HSBC, Santander and Societe Generale.

This is the third green format transaction for Intesa Sanpaolo in 2023, reconfirming the Group's continued commitment to supporting the ESG transition. The new Green Bond follows the dual tranche Senior Non Preferred Green Bond of February 2023 and the Senior Non Preferred Green Bond in Sterling issued in March 2023, in addition to the three previous Senior Preferred Green issues completed over the years 2017, 2019 and 2021 – which respectively had a focus on renewable energy, circular economy and green buildings – together with the Senior Non Preferred Green issued in August 2022 and the Senior Preferred Social bond of October 2022.