Intesa Sanpaolo launches subordinated bond

MILAN, Oct 10 (Reuters) - Italian bank Intesa Sanpaolo Spa (ISP.MI) said on Friday it was launching a Subordinated Lower Tier II bond of up to 1.5 billion euros ($2.06 billion) targeted at the domestic market.

It is a seven-year, fixed-rate bond, with reimbursement in five subsequent annual installments starting from Oct. 29, 2011, the bank said in a statement. The coupon is equal to 6.16 percent.

Placement is from Oct. 14 to 27 with the settlement date on Oct. 29.

(Reporting by Ian Simpson)