Banca Monte dei Paschi di Siena’s €400 Million Tier 2 Subordinated Notes Offering

Allen & Overy and Hogan Lovells provided assistance on the transaction.

Banca Monte dei Paschi di Siena has successfully completed the placement of a fixed-rate Tier 2 subordinated bond, with a 10-year maturity (callable after 5 years from the issue date at the issuer’s discretion, subject to regulatory approval), reserved to institutional investors, with a EUR 400 million size at an 8% annual yield.

The deal completes the issuance programme for this type of instrument set by a specific commitment with the European Commission and represents a further and important step forward in the execution of the Bank’s Restructuring Plan. The issue was met by an excellent market response, with a final order-book exceeding EUR 900 million from more than 100 investors.

The bond was placed across various institutional investor categories, comprising Asset Managers (86%), Banks/Private Banks (11%) Hedge Funds (2%) and others (1%). The geographical breakdown was the following: United Kingdom and Ireland (55%), Italy (28%), Switzerland (7%), France (5%) other countries (5%).

Banca IMI, Barclays, BofA Securities, Goldman Sachs, MPS Capital Services and Natwest Markets managed the placement acting as Joint Bookrunners.

Hogan Lovells advised Banca MPS with a team led by partner Corrado Fiscale, alongside counsel Annalisa Feliciani, assisted by associate Matteo Scuriatti and Alessandro Azzolini. Partner Fulvia Astolfi and associate Maria Cristina Conte advised on tax matters.

Allen & Overy advised the Joint Bookrunner with a team led by partner Cristiano Tommasi and Craig Byrne, assisted by counsel Alessandra Pala, associate Cristina Palma and trainee Edoardo Tonachella. Counsel Michele Milanese advised on tax aspects of the deal.

Involved fees earner: Craig Byrne – Allen & Overy; Michele Milanese – Allen & Overy; Alessandra Pala – Allen & Overy; Cristina Palma – Allen & Overy; Cristiano Tommasi – Allen & Overy; Edoardo Tonachella – Allen & Overy; Fulvia Astolfi – Hogan Lovells; Alessandro Azzolini – Hogan Lovells; Maria Cristina Conte – Hogan Lovells; Annalisa Feliciani – Hogan Lovells; Corrado Fiscale – Hogan Lovells; Matteo Scuriatti – Hogan Lovells;

Law Firms: Allen & Overy; Hogan Lovells;

Clients: Banca IMI; Bank of America Securities; Barclays Bank; Goldman Sachs; Monte dei Paschi di Siena; Mps Capital Services; NatWest Markets;

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