Intesa Sanpaolo issues €1 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 an Additional Tier 1 perpetual bond on the institutional market for a nominal amount of €1 billion, with a 7.00% coupon payable semi-annually.

This is the Additional Tier 1 issue with the furthest first call date (8 years) issued in the last three years in the Euro market.

The issue immediately attracted interest from investors: it reached orders for more than €2.5 billion in the first two and a half hours and a peak of almost €4 billion at the closing of the order book, confirming the excellent credit quality of Intesa Sanpaolo and its appreciation from investors.

Solidity and granularity of the order book allowed the initial pricing indications to be lowered by approximately 50 basis points (7,500% area), with a narrowing higher than the average of similar transactions carried out since the beginning of the year.

The allocation of the order book saw the participation of more than 223 investors:

  • 56% Fund Managers
  • 26% Hedge Funds
  • 8% Banks and Private Banks
  • 8% Insurance and Pension Funds
  • 2% Other

with a geographical distribution that highlights 37% from the United Kingdom, 19% from France, 17% from Italy, 6% from Switzerland, 4% from Germany, 4% from Denmark, 2% from Spain and 4% Other.

Banks that participated in the placement were - in addition to the IMI CIB Division of Intesa Sanpaolo - Barclays, BofA Securities, Deutsche Bank, Goldman Sachs International, HSBC, J.P. Morgan and Morgan Stanley.


Photo credits: Guglielmo Bagnolini