Italy’s Credem launches covered bond

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Italy’s Credem has launched a €750m covered bond to support the group’s growth strategy.

The inflows posted will be used to boost Credem’s baking and credit services activity, the group said. Credem said it has already boosted loans to families and firms by 2.8% yoy, against a drop of 2.2% compared with the same period last year.

Since the launch of the fund, Credem has received orders for a total of €3bn, the company said. Institutional investors significantly contributed to the result, with 71% of the bond being sold abroad, 33% of which in Germany and Austria; 15% in France; 7% in the UK and Ireland; 5% in the Nordics and 4% in both Asia and Switzerland. The remaining 29% of the bond was subscribed by Italian institutional investors.

The covered bond has a seven-year duration and expects annual dividend of 0.875%, equal to the mid-swap rate with a 25 basis points spread. The operation will be concluded next 6 November, looking at the following investor base: 46% asset management companies; 30% central banks and official institutions; 16% banks and 8% insurance companies.

The issuance was managed by an allocation committee including Barclays Bank Plc, BNP Paribas, Natixis, Nomura International Plc, Société Générale CIB.

In the picture Giorgio Ferrari, president of Credem

 

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