Siena, 22 June 2010 - Banca Monte dei Paschi di Siena successfully finalised today an inaugural issue of covered bonds in the Eurobond market as part of the EUR 10 bln residential mortgage-backed covered bond programme announced in June.
The 5-year fixed rate EUR 1 bln offering is targeted to professional investors and international intermediaries. Managing banks in the transaction were Deutsche Bank, Morgan Stanley, MPS Capital Services, RBS and UBS Investment Bank which acted as Joint Lead Managers and Calyon, HSBC, LBBW, Santander, SocGen as Co-Lead Managers. Morgan Stanley, MPS Capital Services and RBS also advised on the structuring of the transaction as Joint Arrangers in the programme.
The transaction pays a 3.125% annual coupon with a yield of 3.188%, equivalent to the 5-Year mid swap rate plus 105 bps, i.e. a 34 bps premium over reference multiannual treasury bonds (Italian BTPs).
The transaction is attracting significant interest with strong participation from both domestic investors (ca. 55%) as well as investors from the Eurozone, primarily from Germany (11%), Netherlands (9%), and the UK (8%).
The transaction is the first covered bond offering by Banca Monte dei Paschi di Siena and marks the reopening of the covered bond market for Italian issuers following the reappearance of volatile market conditions in recent weeks.
