Intesa Sp: issues Yankee bonds totalling $3.5bn, with demand reaching up to 20bn
Intesa Sanpaolo has placed a multi-tranche issue totalling $3.5 billion on the US market, aimed at institutional investors. Specifically, the bank has issued a four-year, $1.5 billion senior non-preferred bond at a fixed rate of 80 basis points over the Treasury yield, another six-year senior non-preferred bond worth $1 billion at a fixed rate of 95 basis points over the Treasury yield, and an 11-year Tier 2 bond worth $1 billion at a fixed rate of 150 basis points over the Treasury yield.
According to a statement, the issue “received an immediate and strong response from the market, with demand exceeding $10.5 billion within just two and a half hours of the announcement. The order book peaked at around $20 billion, closing at around $14.5 billion following confirmation of the final spread’. Demand “enabled a significant narrowing of spreads compared with initial indications, with a compression of 30 basis points on the senior non-preferred tranche and 35 basis points on the Tier 2 tranche”. “The transaction represents a particularly significant achievement for Intesa Sanpaolo. It confirms the strength of our brand as an issuer in the US market, having demonstrated – even three years on from our last issue – our ability to attract extremely deep and diversified demand from institutional investors,” commented Nicoletta Bertolini, Head of Funding at Intesa Sanpaolo.
“The transaction ranks among the key benchmarks not only for the Italian market but also within the wider European context, and stands out for the high quality of demand, the significant support from real-money investors and the ability to achieve a substantial narrowing compared to the initial guidance – one of the largest such movements observed since the start of the year,” he added. “Overall, the execution highlighted US investors’ strong appreciation of the business model, a factor of paramount importance in the current climate”. The issue, Intesa concludes, “saw strong participation from asset managers”.
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