(Alliance News) – Credito Emiliano Spa placed a new bond on Monday, intended for institutional and professional investors, for an amount of 500 million euros. The issue, in Senior Preferred format, will serve to support social sustainability activities and highlights the group’s commitment to ESG, the company underlines in a note.
The transaction attracted market interest with orders of around €1 billion, roughly double the offer. The large number of investors allowed a reduction of 25 basis points compared to the initial spread indications. An annual coupon of 4.875% is expected.
Proceeds will be used to support social activities, such as financing or refinancing assets related to small and medium-sized businesses operating in economically disadvantaged regions, female entrepreneurship and activities related to the health system.
The social bond, with an expected rating of Baa3 by Moody’s and BBB by Fitch, will have a maturity of 6.5 years, and the possibility of early repayment after 5.5 years, in order to maximize the efficiency of a point from a regulatory point of view.
All bonds issued by Credem in 2023 have so far been ESG rated, bringing the total outstanding green and social transactions to around €2 billion.
Credem’s bond issue was placed by a syndicate of banks comprising BNP Paribas, BofA Securities, Crédit Agricole CIB, Deutsche Bank and Santander.
Forty-six percent of the issue was placed with Italian institutional and professional investors, while the remaining 54 percent was placed with foreign investors, mainly UK/Ireland 19 percent, France 17 percent. percent and Germany/Austria/Switzerland 15 percent.
In parallel with this issue, Credem launched a partial redemption offer, for a maximum amount of 200 million euros, from the Senior Non-Preferred bond issued in 2019.
Credem shares closed on Monday in the green by 1.6 percent at 7.79 euros per share.
By Chiara Bruschi, Alliance News journalist
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