Intesa Sanpaolo launches €1.25bn covered bonds

Italy’s Intesa Sanpaolo has launched a €1.25 billion covered bonds backed by mortgages targeting institutional markets.

It is a 12-year, fixed-rate issue under the €20bn OBG Program mostly backed by residential and commercial mortgages assigned by Intesa Sanpaolo.

The 3.25% coupon is payable in arrears on February 10th of each year.
The re-offer price is 99.892%.

Considering the re-offer price, the yield to maturity is 3.261% per annum. The total spread for the investor is equal to the mid-swap rate plus 108 basis points, 73 basis points under the BTP of the same maturity.
Settlement is due on February 10th 2014.

The minimum denomination of the bond issue is €100,000 and multiples.
The bond will not be offered to the retail market; it is distributed to institutional investors and financial institutions. It will be listed on the Luxembourg Stock Exchange and, as usual, traded OTC.

Banca IMI, Barclays, HSBC, Société Générale Corporate & Investment Banking and UniCredit act as joint lead managers for the placement of the bond.

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