(Alliance News) - Banco BPM Spa on Tuesday announced that it has completed a new issue of a EUR400 million Additional Tier 1 capital instrument with a perpetual maturity and callable "callable" as of January 2031.

At the same time, the bank announced an offer to repurchase a perpetual bond with a total outstanding nominal amount of EUR400 million.

The bond, intended for institutional investors, was issued at par with a fixed coupon at 7.25 percent until July 16, 2031, payable semi-annually; should the issuer decide not to exercise the early redemption option, the coupon would be recalculated based on the 5-year euro swap rate at the time of the recalculation date, increased by a spread of 455.3 bps, and would remain fixed for the next 5 years.

The bond also provides for a temporary reduction in face value if the group's CET1 ratio falls below 5.125 percent.

On Tuesday, Banco BPM closed down 0.4 percent at EUR6.34 per share.

By Claudia Cavaliere, Alliance News reporter

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