Italian Mps returns triumphantly to the bond market
Italy’s third-largest lender Monte dei Paschi di Siena (Mps) returned to the bond market on 11 January 2018, issuing its first bond sale since the Italian government had to rescue the bank last year.
In particular, the Monte dei Paschi di Siena has launched a 10-year Tier2 bond (with a call after five years) that has raised €750m after investors placed €2.5bn in orders.
The bond, maturing on 18 January 2028 and to be available for purchase on 18 January 2023, guarantees a final yield of 5,375%.
The bank’s rapid success – on its return to the bond market – suggests that investors’ mood is not being affected by uncertainty over upcoming Italian election to be held next March.