January 25, 2017 / 7:16 PM / 2 years ago

Monte dei Paschi issues 7 bln euros in state-backed bonds

MILAN, Jan 25 (Reuters) - Italy’s Monte dei Paschi di Siena said on Wednesday it had issued 7 billion euros ($7.5 billion) in bonds guaranteed by the state, which it is keeping to use as collateral in funding operations.

It may also sell the notes on the secondary market, it said.

Italy introduced in December a state guarantee for bank debt as part of a 20 billion euro package to help Monte dei Paschi and other ailing lenders.

The Tuscan bank had to be rescued by the Italian state after failing to pull off a 5-billion euro capital increase.

Monte dei Paschi said it had issued two bonds maturing, respectively, in January 2018 and January 2020. The one-year bond carries a 0.5 percent coupon and is worth 3 billion euros.

The second bond, with a 0.75 percent coupon, is worth 4 billion euros.($1 = 0.9326 euros) (Reporting by Valentina Za, editing by Stephen Jewkes)

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