Intesa Sanpaolo issues bond on the US market

Italy’s Intesa Sanpaolo is issuing a senior bond targeted exclusively
at the US and Canadian markets for a total amount of $1.25bn.

The bond will be fixed-rate and will be issued under the $ Medium Term Notes Programme of Intesa Sanpaolo and will have a five-year maturity. The bond will be placed on the US and Canadian markets.

The bond will be exempt from registration in the United States under Section 3(a)(2) of the US Securities Act as technically guaranteed by the New York branch of Intesa Sanpaolo, as well as from registration in the Canadian provinces of Ontario and Quebec on the basis of the exemptions applicable to initial placements reserved only for institutional investors, Intesa Sanpaolo also said.

The coupon, payable semi-annually in arrears on every 15 January and 15 July of each year from and including 15 January 2014 up to the maturity date, is equal to 3.875% per annum.

The re-offer price is 99.981%. Considering the re-offer price, the yield to maturity is 3.88% per annum and the total spread for the investor is equal to the yield of 5-year Treasury Bill plus 260 basis points per annum.

Maturity date is on 19 January 2019. The minimum denomination of the bond issue is U.S.$200,000 and U.S.$1,000 thereafter. Settlement for the bond issue is due on 4 November 2013.

Banca IMI, Citigroup, Goldman Sachs and JP Morgan Securities Inc. are the joint lead managers of the bond offering.
The ratings assigned to Intesa Sanpaolo’s senior long-term debt are: Baa2 by Moody’s, BBB by Standard & Poor’s, BBB+ by Fitch and A (low) by DBRS, Intesa Sanpaolo has also said.

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