INTESA SANPAOLO ISSUES THE FIRST “SERIE SPECIALE BANCA PROSSIMA” BOND
· The 50 million offer will be used to finance the Third Sector at favourable rates through the subsidiary Banca Prossima
· Placement will begin today and − save for early termination – last until 6 December. The rate is fixed, equal to 2% gross a year.
Milan, 28 October 2013 − Intesa Sanpaolo issues the first “Serie speciale Banca Prossima” bond. The entire proceeds of the funding will be used to finance entities operating in the non-profit sector, both secular and religious, at favourable interest rates through the subsidiary Banca Prossima, dedicated exclusively to the Third Sector.
The placement of the Loan started today, 28 October, at Intesa Sanpaolo Group branch locations and will end on 6 December 2013, save for early termination.
The maximum nominal amount of the issue is equal to 50 million euro. The issue is called “Intesa Sanpaolo S.p.A. a Tasso Fisso 2,00% 11/12/2013 – 11/12/2018 “Serie Speciale Banca Prossima” and takes place in minimum batches of 10,000 euro. The issuer is Intesa Sanpaolo S.p.A., which will transfer the funds raised from the issuance to Banca Prossima.
The issue date is 11 December 2013, with maturity on 11 December 2018. The rate is equal to 2% gross a year, lower than the market rates for Intesa Sanpaolo bonds with the same term. No placement commissions are contemplated.
The lesser yield for subscribers will be entirely transferred to the benefit of the non-profit organisations financed by Banca Prossima. The new securities will thus contribute towards a recovery in investments in the Third Sector, which, through its 300,000 organisations, provides services to over 30 million Italians but, owing to the continued economic uncertainty, has become more cautious in its commitments to investing in new projects.
“With this innovative operation – stated Intesa Sanpaolo CEO, Carlo Messina − Intesa Sanpaolo intends to emphasise and consolidate, through its subsidiary Banca Prossima, its focus on the Third Sector, by providing a concrete answer to the ‘non-profit’ world. This diverse and crucial sector acts as a driver and promoter of civil commitment. It advocates values that go beyond profit and whose foundations translate into socially useful activities, which are essential and, today, increasingly necessary”.
“Today, Banca Prossima’s major challenge − stressed Banca Prossima CEO, Marco Morganti − is to keep down the cost of capital for the non-profit organisations using our services. For years, we have been working with this objective in mind by implementing innovative tools, such as the guaranteed crowdlending platform Terzovalore, which has made it possible for many non-profit Organisations to activate investments. The ‘Serie Speciale Banca Prossima’ bond is a first large-scale ‘industrial’ instrument, as it can translate into loans at favourable conditions. As the placement involves all of Intesa Sanpaolo Group’s 4,500 branches, we are poised to finance the Italian non-profit sector with large amounts of money at a low cost”.
Banca Prossima SpA is the Intesa Sanpaolo Group bank dedicated to serving the non-profit sector, designed to meet the needs and demands of Third Sector organisations. Pursuant to its Articles of Association "Banca Prossima pursues the objective of generating social value (...). To this end, it shall provide credit to support the best non-profit initiatives for people’s service, the dissemination of culture and education, the accessibility and protection of the environment and art, as well as access to credit and jobs". Through its “Fondo per lo sviluppo dell'impresa sociale” (Social Enterprise Development Fund), to which it allocates a part of its profits on an annual basis, Banca Prossima supports and finances new projects in the non-profit sector, in compliance with the guidelines of the Solidarity and Development Committee, consisting of authoritative and independent individuals from the non-profit sector.
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Last updated 30 October 2013 at 10:17