Intesa Sanpaolo successfully places a Tier 2 bond for €1.25 billion

Intesa Sanpaolo has successfully placed a Tier 2 subordinated bond ("T2") on the institutional market for €1.25 billion, attracting total orders of approximately €3 billion and interest from 213 investors.

Specifically, it is a 12-year bond with an early redemption option callable after 7 years. Along with the recent Senior Non-Preferred bond issued on September 5, this issuance is part of the 2025 Funding Plan.

Thanks to a granular and high-quality order book, the transaction was priced at Mid Swap + 195 basis points, marking the lowest cost ever achieved for this type of subordinated bond by an Italian bank in the last 14 years.

Order book allocation:

• 63% Fund Managers
• 13% Official Institutions
• 9% Hedge Funds
• 9% Insurance Companies and Pension Funds
• 5% Banks and Private Banks
• 1% others

with the UK taking the lion’s share of the final allocation (45%) followed by 15% from France, 13% from Asia, 8% from Germany/Austria/Switzerland, 7% from Italy, 7% from Benelux, 3% from Spain, and 2% others.

Joint book runners - in addition to the IMI CIB Division of Intesa Sanpaolo – were Barclays, BofA Securities, Citi, Goldman Sachs International, J.P. Morgan and Morgan Stanley.