(Alliance News) - Banca Monte dei Paschi di Siena Spa announced the successful placement of a European Covered Bond (Premium), Conditional Pass Through type, maturing on 22 January 2030 and targeted at institutional investors, for a total amount of EUR750 million.
The operation marked the reopening of the covered bond segment for Italian issuers in 2026, in a primary market context characterized by particularly high volumes.
Demand was robust, with orders exceeding EUR2.4 billion from more than 60 investors, allowing the amount to be set at EUR750 million.
The bond pays an annual coupon of 2.625%, with a re-offer price of 99.577%, corresponding to a spread of 30 basis points over the reference rate—the lowest level since the launch of the bank's covered bond program and significantly below the initial guidance in the mid swap area plus 37 basis points.
The geographical distribution of demand was broad and diversified, with Italian investors accounting for 36%, Nordic countries 28%, the UK 16%, Germany, Austria, and Switzerland 15%, while France, Spain, and other countries represented about 5%.
The terms of this issuance are significantly improved compared to the covered bond with a maturity of 5 years and 7 months placed by Banca MPS in June 2025, which had a spread of 54 basis points, confirming the improvement in the MPS Group's profile, further strengthened after the completion of the voluntary OPAS on Mediobanca in September last year.
The bond, listed on the Luxembourg Stock Exchange, has expected ratings of Aa2 from Moody's, AA+ from Fitch, and AA(high) from Morningstar DBRS.
By Antonio Di Giorgio, Alliance News reporter
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