Intesa Sanpaolo places $3 bln dual tranche Yankee bond

Intesa Sanpaolo has successfully placed a dual tranche bond on the US market for a total of $3 billion, collecting orders for over $11 billion: it is Intesa Sanpaolo’s largest issue in the last 10 years.

The order book is the largest ever for an Intesa Sanpaolo dual tranche Yankee issue and the 30-year tranche is the longest in Senior Preferred issued in 2023 by dollar banking issuers.

The transaction, completed at a cost in line with that theoretically replicable in euros, confirms Intesa Sanpaolo's strong appreciation by American investors.

The issue in details:

• 10-year Senior Preferred with a nominal value of $1.5 billion, at a level equal to US Treasury + 280 bps and a fixed rate coupon of 7.20%
• 30-year Senior Preferred with a nominal value of $1.5 billion, at a level equal to US Treasury + 325 bps and a fixed rate coupon of 7.80%.

The issue, mainly intended for the US market, also saw strong participation from investors from the United Kingdom and Asia:

10-year Senior Preferred tranche, 275 investors as follows

• 75.3% Asset Managers
• 11.3% Official Institutions
• 9% Insurance and Pension Funds
• 2.8% Banks

with the majority coming from the United States and Canada with 71.8%, 13.6% from UK and 10.2% from Asia.

30-year Senior Preferred tranche, 226 investors as follows

• 77.9% Asset Managers
• 14.2% Insurance and Pension Funds
• 4.9% Official Institutions
• 0.9% Banks

with the majority coming from the United States and Canada with 73.6%, 17.6% from UK and 5.5% from Asia.

Joint book runners - in addition to the IMI CIB Division of Intesa Sanpaolo – were Barclays, Bank of America, Citigroup, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, TD Securities and Wells Fargo.