(Alliance News) - Banco BPM Spa announced Tuesday that it has successfully completed a new Social Senior Preferred issue with a maturity of five years in the amount of EUR500 million.

Orders, from more than 150 investors peaked at EUR2.4 billion "and allowed the transaction to be completed with the tightest spread ever since the group's inception," the company announced.

The bond was issued at a price of 99.607 percent and pays a fixed coupon of 3.375 percent.

The bond, which is reserved for institutional investors, was issued under the issuer's Euro Medium Term Notes Program and has an expected rating of Baa2/BBB/BBB, Moody's/S&P/Fitch/DBRS.

"This is the first Italian 2025 Social Bond issued under the Green, Social and Sustainability Bonds Framework that increases Banco BPM's total ESG issuance to EUR6.25 billion," the bank adds.

The proceeds will be used to refinance Eligible Social Loans, as defined in the bank's Framework, published on November 7, 2023. Specifically, the proceeds will be aimed at refinancing loans provided to Italian SMEs, located in economically disadvantaged areas.

The Framework is integrated into Banco BPM's ESG strategy and represents the concrete realization of the environmental and social sustainability objectives that increasingly address and characterize the Bank's various business areas.

Banca Akros, a related party of the issuer, BNP Paribas, Crédit Agricole CIB, Deutsche Bank, Goldman Sachs, JP Morgan, and Banco Santander acted as Joint Bookrunners. Credit Agricole CIB also acted as Green and Social Structuring Advisor.

Banco BPM closed Tuesday up 1.6 percent to EUR8.12 per share.

By Chiara Bruschi, Alliance News reporter

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