(Alliance News) - Credem Spa announced Thursday evening that it has issued a new bond issue, aimed at institutional and professional investors, for

an amount of EUR500 million. The issue, in the "Social Covered Bond" format, will go to support social sustainability activities and highlights the group's commitment to ESG.

The transaction garnered great interest from the market with orders for about EUR2.5 billion, which was essentially 5 times the offer. The large number of investors allowed for a narrowing of 8 basis points from the initial spread guidance. In fact, it started with guidance of MS+75 bps and then closed at MS+67 bps. An annual coupon of 3.25 percent is scheduled to be paid.

32% of the issue was placed to Italian institutional and professional investors, while the remaining 68% was placed to foreign investors, mainly Germany, Austria and Switzerland 21%, Nordic countries 20%, England/Ireland 9% and Spain 8%.

Credem closed Thursday's session 1.3 percent in the red at EUR8.24 per share

By Maurizio Carta, Alliance News reporter

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