I.Sanpaolo bond coupon 138 bps above midswap-sources

MILAN, May 16 (Reuters) - Intesa Sanpaolo (ISP.MI) has had its 1.0 billion euro eurobond priced at 99.704 with a coupon of 5.75 percent and a yield of 138 basis points above the midswap rate, according to sources close to the operation.

The Italian bank's subordinated Lower Tier II bond was expected to have had a yield in the mid-to-high 130s.

The 10-year bond is callable after the fifth year.

Goldman Sachs, Banca Imi and RBS are the coordinators of the issue.

Intesa Sanpaolo has a "AA-" rating from Standard & Poor's and Fitch Ratings and an "Aa2" from Moody's Investors Service. (Reporting by Gabriella Bruschi)