Intesa Sanpaolo places EUR 1.25 billion senior non-preferred green bond

Intesa Sanpaolo priced a EUR 1.25 billion Senior Non-Preferred green bond on Monday, tapping the euro market for an eight-year benchmark, callable after seven years, under its Green, Social and Sustainability Bond Framework. The bond pays a 3.75% fixed annual coupon and was priced at mid-swaps plus 88 basis points, 32 basis points inside initial guidance of mid-swaps plus 120 basis points, after orders peaked at EUR 4.3 billion. Intesa said it was the lowest spread it had ever achieved on a Senior Non-Preferred issue. Final demand was around EUR 2.7 billion, with France (24%), the United Kingdom (21%) and Germany-Austria-Switzerland (20%) the largest sources and Italy accounting for 9%.

The notes mature on 22 June 2034, with an issuer call on 22 June 2033, and settle on 22 June 2026. If the call is not exercised, the coupon resets to three-month Euribor plus 88 basis points.

USE OF PROCEEDS UNDER GROUP FRAMEWORK

Proceeds from the trade will be allocated to eligible projects under Intesa's Green, Social and Sustainability Bond Framework, the bank said.

PLACEMENT

Intesa said the placement attracted broad and diversified participation from institutional investors.

The banks on the deal alongside Intesa Sanpaolo's IMI CIB Division were BBVA, JPMorgan, Natixis, RBI, Santander and UniCredit.