Banco Montepio issues subordinated debt of 250 million for 10 years and three months

Banco Montepio issued subordinated debt securities in the amount of €250 million for a period of 10 years and three months.

In a statement, the Pedro Leitao-led bank said it had finalized the conditions for the issuance of securities representing subordinated debt under the EMTN (Euro Medium Term Note) programme. Settlement will take place on March 12, 2024.

The €250 million issue has a term of 10 years and three months, with an early repayment option by Banco Montepio during a period of three months after the fifth year, an issue price of 100% and a fixed interest rate of 8. 5% annually until the date of exercising the early repayment option.

If the issue is not repaid early, the interest rate for the remaining period will be linked to the 5-year swap rate plus a margin of 5.815%.

The bank reveals that this offering attracted significant investor interest, with demand exceeding four times the offer amount and the final allocation was made with 80 institutional investors geographically diverse: Iberia (33%), UK (30%), France (13%), Italy (5 %), among other countries.

This release integrates the measures expected in the strategy defined by Banco Montepio to strengthen and standardize capital ratios and maintain an appropriate financing plan.

“Following the recognition of the rating agencies, this result now unambiguously confirms the interest and confidence on the part of investors, at a global level, in the current management model of Banco Montebio, which is demonstrated by the success achieved in the key indicators of profitability, capital and risk,” the bank adds.

BNP Paribas, as global coordinator, Bank of America Securities Europe, Crédit Agricole Corporate and Investment Bank and NatWest Markets NV acted as joint lead managers on the transaction.