MILAN, April 2 (Reuters) - Mid-tier Italian lender Credito Valtellinese said on Wednesday it had sold mortgage-backed securities worth 347 million euros ($479 million) with an expected life of around five years, meeting demand for 1.5 times that amount.
The notes sold are the A1 senior tranche of a securitisation of mortgages Creval completed in late 2011, initially retaining the mortgage-backed securities.
The senior tranches have an AA+/A2 rating by Fitch and Moody’s respectively.
The A1 senior tranche, initially worth 550 million euros, pays 50 basis points over the three-month Euribor rate. The reoffer price was 98.45, Creval said.
The bank said mutual funds bought 65 percent of the issue and that foreign investors took more than 85 percent of the total.
Creval said the deal was important because it was its first mortgage-backed sold to investors. ($1 = 0.7249 Euros) (Reporting by Valentina Za; editing by Francesca Landini)