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Allen & Overy advises on senior preferred fix-to-floater bond by Banca Monte dei Paschi di Siena

Allen & Overy advised the financial institutions acting as Joint Bookrunners on a EUR500 million unsecured senior preferred fix-to-floater bond by Banca Monte dei Paschi di Siena S.p.A. The issuance, intended for institutional investors, has a four-year maturity (5 September 2027) with a call option for the issuer in the third year. The bond is in line with the 2023 funding plan objectives and in compliance with MREL targets.

The notes have a fixed annual coupon equal to 6.75% for the first three years. Should the issuer not call the bond on the third-year optional redemption date (5 September 2026), the coupon will reset to a floating rate equal to that of three-months’ Euribor, increased at a margin of 3.283%.

The bond has been documented under BMPS’s EMTN Debt Issuance Programme and will be listed on the Luxembourg Stock Exchange.

A&O’s team advising the Joint Bookrunners – BofA Securities, Banca Monte dei Paschi di Siena, J.P. Morgan, Mediobanca e Morgan Stanley – was led by partners and co-heads of the Italian International Capital Markets practice, Cristiano Tommasi and Craig Byrne, supported by associate Elisabetta Rapisarda and trainee Paolo Martellone.