Intesa Sanpaolo successfully places $2 billion Yankee dual tranche bond
Intesa Sanpaolo achieved its largest-ever order book for a Yankee dual tranche bond in its $2 billion placement on the US market.
Orders reached over $10 billion – five times the amount placed – demonstrating strong US investor appreciation for Intesa Sanpaolo paper. The transaction immediately attracted market interest, exceeding orders of $2 billion per single tranche in the first 90 minutes.
The placement reopens the Yankee market for Intesa Sanpaolo after more than a year. Two-thirds of the two tranches went to US and Canadian investors, but the issue also attracted European and Asian investors.
Joint book runners – in addition to IMI-Intesa Sanpaolo – were Bank of America, Barclays, HSBC, Goldman Sachs, Morgan Stanley, Santander and Toronto Dominion.
Details of the Senior Preferred tranche, with value date 22 November 2022:
- 3-year Senior Preferred bullet for a nominal amount of $750 million and at a level equal to US Treasury +285 bps, fixed rate coupon of 7.000%
- Orders of over $4.5 billion allowed a 45 basis-point tightening from the initial spread
- The tranche went to more than 220 investors: 70% Fund Managers, 16% Banks and Private Banks, 11% Insurance and Pension Funds, and 2% Official Institutions
- The geographical distribution was 62% from the United States, 30% from Europe, 6% from Canada and 2% from Asia
Details of the Senior Non Preferred tranche, with value date 22 November 2022:
- Inaugural Senior Non Preferred with a final maturity of 11 years but callable in year 10, for a nominal amount of $1.25 billion and at a level equal to US Treasury +440 bps, fixed rate coupon of 8.248%
- Orders of over $5.5 billion made it possible to tighten by 45 basis points with respect to the initial spread
- The tranche went to more than 250 investors: 88% Fund Managers, 5% Insurance and Pension Funds, 4% Banks and Private Banks, and 2% Official Institutions
- The geographical distribution was 55% from the United States, 37% from Europe, 7% from Canada and 1% from Asia
Last updated 16 November 2022 at 12:52:28
