Intesa Sanpaolo SpA Launches EUR 1.25 Billion 10-Year Bond

Intesa Sanpaolo SpA announced that it has launched a EUR 1.25 billion Obbligazioni Bancarie Garantite (OBG) issue targeted at institutional markets to optimize its treasury management. It is a 10-year, fixed-rate issue under the EUR 20 billion OBG Programme mostly backed by residential and commercial mortgages assigned by Intesa Sanpaolo. The 3.625% coupon is payable in arrears on December 5 of each year. The re-offer price is 99.03%. Considering the re-offer price, the yield to maturity is 3.743% per annum. The total spread for the investor is equal to the mid-swap rate plus 200 basis points, 106 basis points below the BTP of equivalent maturity. Settlement is due on December 3, 2012. Minimum denomination of the bond issue is EUR 100,000 and multiples. The bond is not offered to the Italian retail market; it is distributed to international institutional investors and financial institutions. It will be listed on the Luxembourg Stock Exchange and, as usual, traded Over-the-Counter. Banca IMI, Barclays, Deutsche Bank and Societe Generale Corporate & Investment Banking act as joint lead managers for the placement of the bond.