MPS issues covered bonds worth 750 million euros

(AGI) Rome, Oct 20 - Monte dei Paschi di Siena (MPS) hasreturned to international markets by issuing a new batch ofcovered bonds destined for the euromarket. The issuance, thebank explained, is the first time MPS has placed guaranteedbonds on the market following changes to the "conditional passthrough" program drawn up in June and confirms its ability tosuccessfully access international markets. The operation wasannounced on the market on Tuesday through a benchmark emissionwith the indicated initial price of +85 basis points in the midswap area. Orders rose rapidly, reaching over 800 million

(AGI) Rome, Oct 20 - Monte dei Paschi di Siena (MPS) hasreturned to international markets by issuing a new batch ofcovered bonds destined for the euromarket. The issuance, thebank explained, is the first time MPS has placed guaranteedbonds on the market following changes to the "conditional passthrough" program drawn up in June and confirms its ability tosuccessfully access international markets. The operation wasannounced on the market on Tuesday through a benchmark emissionwith the indicated initial price of +85 basis points in the midswap area. Orders rose rapidly, reaching over 800 million eurosby midday. The operation, worth 750 million euros, has anexpected rating of A2 by Moody's, BBB by Fitch, and AH by DBRS,and is targeted at qualified institutional investors andfinancial intermediaries. The bonds will expire on January 20,2022, with yearly coupon payments of 1.25 percent. Taking theprefixed 99.244% re-offer price into account, the yield amountsto 1.377 percent annually. The payment day has been set forOctober 28. The operation's placement was overseen by J.P.Morgan, MPS Capital Services, RBS, and Unicredit Bank as JointLead Managers and Bookrunners. The issuance was distributedamong 45 institutional investors, with 70 percent based inItaly, 19 percent in the UK and Ireland, 3 percent in Germanyand Austria, and 3 percent in France, evidencing interestacross most eurozone countries. Central banks and governmentinstitutions were the primary investors with 47 percent of theacquisitions, followed by fund managers at 29 percent, andbanks at 21 percent. (AGI).