Monte dei Paschi di Siena’s €500 Million Senior Preferred Notes Offering

Allen & Overy and Hogan Lovells advised on the transaction.

Banca Monte dei Paschi di Siena has successfully completed the issue of a fixed-rate Senior Preferred unsecured bond with a 3-year maturity and a size of EUR 500 million, reserved to institutional investors.

The deal, which was executed in line with the Bank’s Funding Plan, represents the first issue of a senior unsecured instrument by Banca Monte dei Paschi since the start of the Restructuring Plan.

The issue encountered a very positive market response, with an order-book above EUR 1.1 billion from around 100 investors. Thanks to the strong demand, the initial price guidance of 4.250 – 4.375% was tightened towards the final rate, set at 4.000%.

The bond was placed across various institutional investor categories, comprising Asset Managers (60.5%), Hedge Funds (23.8%), Banks/Private Banks (14.3%), and others (1.4%). The geographical breakdown was the following: UK (37.6%), Italy (31.7%), France, Luxembourg and Switzerland (13.7%), other countries (17%).

Morgan Stanley managed the placement acting as Sole Lead Manager, assisted by MPS Capital Services as Co-Manager.

Hogan Lovells advised Banca Monte dei Paschi di Siena on the deal with a team led by partner Corrado Fiscale, counsel Annalisa Feliciani and associate Matteo Scuriatti. On tax law provided assistance partner Fulvia Astolfi and senior associate Maria Cristina Conte.

Allen & Overy advised a pool of banks with a team led by partners Cristiano Tommasi and Craig Byrne, assisted by counsel Alessandra Pala and trainee Cristina Palma; Counsel Michele Milanese acted on tax matters.

Involved fees earner: Craig Byrne – Allen & Overy; Michele Milanese – Allen & Overy; Alessandra Pala – Allen & Overy; Cristina Palma – Allen & Overy; Cristiano Tommasi – Allen & Overy; Fulvia Astolfi – 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: Monte dei Paschi di Siena; Morgan Stanley; Mps Capital Services;