MILAN, July 8 (Reuters) - Italy's Banca Monte dei Paschi di Siena said on Tuesday it had received orders worth nearly 1.3 billion euros ($1.8 billion) for a 1 billion euro 10-year covered bond.
This was the first bond issue for Italy's No. 3 bank by branches since it raised nearly 5 billion euros last month to help repay a state bailout it received last year and boost its capital base ahead of a health check of euro zone lenders.
Monte Paschi said in a statement the placement "confirms the bank's ability to successfully enter the international market, also offering long-term issues".
The Tuscan lender said the bond was priced at 148 basis points over the mid-swap rate, a touch lower than the original guidance of 150 basis points over the benchmark.
The order books for the bond, which carries an annual coupon of 2.875 percent, closed three hours after the deal was launched, the bank said.
The bonds were bought by 114 institutional investors, mainly from Germany, Austria, the United Kingdom and Italy. More than half of the issue went to asset managers, followed by banks, and then insurance and pension funds.
Bank of America Merrill Lynch, Deutsche Bank, HSBC, MPS Capital Services and UBS ran the transaction.
($1 = 0.7331 Euros) (Reporting by Agnieszka Flak; editing by Isla Binnie and Jane Baird)