(Alliance News) - Banca Monte dei Paschi di Siena Spa on Tuesday concluded the placement of a EUR750 million Social Conditional Pass Through European Covered Bond issue with a maturity of 6 years to July 16, 2030, aimed at Italian and foreign institutional investors.

This is the first Social European Covered Bond issue carried out by the bank.

Proceeds from the issue of the Social Covered Bond will go to support social sustainability projects by financing and/or refinancing Eligible Social Assets as defined under the Green, Social and Sustainability Bond Framework approved by the bank in June 2024 and on which a Second Party Opinion was obtained from DNV, an independent entity with expertise in sustainability, social and environmental issues, the company explained in a note.

The issue, with an expected rating of Aa3 / AA- / AA - Moodys/Fitch/Morningstar DBRS - garnered strong interest from Italian and foreign investors with orders exceeding the EUR1.2 billion threshold allowing the coupon to be set at the level of 3.3750 percent, at a re-offer price of 99.445 percent corresponding to a spread of 65 basis points over the 6-year mid swap rate, a spread lower than that of the bank's previous covered bond issue with a 5-year maturity.

On Tuesday, Banca Monte dei Paschi di Siena closed down 0.5 percent at EUR4.95 per share.

By Claudia Cavaliere, Alliance News reporter

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