CDP, 750 million euros bond issue closed successfully
Press release

CDP, 750 million euros bond issue closed successfully

Markets confirm interest in CDP – strong support from foreign investors

  • The Fixed Rate Bond, unsubordinated and unsecured, addressed to institutional investors, has a duration of 8 years with an annual coupon of 1.875% and a price of 99.845%
  • The strong demand, with more than 55% subscribed by foreign investors, has been equal to about 1.5 billion euros
  • The funding raised will finance investments supporting the growth and competitiveness of the Italian economy


Rome, 31 January 2018 h 7:10 pm 

Cassa depositi e prestiti Spa (CDP) successfully closed today a fixed rate note issue, addressed to institutional investors, unsubordinated and unsecured, for a nominal amount of 750 million euros.  

The notes – issued under CDP Debt Issuance Programme (DIP) amounting to 10 billion euros listed on the Luxembourg Stock Exchange – have a duration of 8 years (maturity February 2026), with an annual coupon of 1.875% and a price of 99.845%.

With this transaction, which follows the inaugural Social Bond issued last November 2017, CDP confirms its presence on the capital markets and continues successfully its offer to institutional investors.

The purchase orders have been received from more than 90 investors, for a total amount of about 1.5 billion euros (about 2 times the supply).

In consideration of the positive feedback from the market and the amount of orders received, the price has been fixed at 103 basis points above the reference mid-swap rate, about 12-17 basis points lower than the initial range of pricing guidance.

Foreign investors responded with great interest to the issue, subscribing for nearly 55% of the total, whilst the remaining 45% has been subscribed by domestic investors. In terms of types of investors, 47% of subscribers were investment funds and management companies, 44% banks and the remaining 9% insurance companies and other investors.

The notes, which will be listed on the Luxembourg Stock Exchange, have an expected medium-long term rating equal to the rating assigned to CDP, which is aligned with the one of the Republic of Italy: BBB (stable) by Standard & Poor’s, Baa2 (negative) for Moody’s, BBB (stable) for Fitch and A- (stable) for Scope.

Banca IMI, Credit Suisse International, Deutsche Bank, J.P. Morgan, Mediobanca and Morgan Stanley acted as Joint Lead Managers and Joint Lead Bookrunners for the transaction.

The net proceeds from this issue will be used by CDP to finance the investments of the so-called “Separated Account”: the investments for the general economic interest supporting the growth and competitiveness of the Italian economy. In particular the net proceeds will be allocated to all the activities which, under applicable regulations, may be funded also through Postal Savings (such as lending to Public Entities, support for the economy and, in particular, SMEs, public interest infrastructures).

The success of the transaction, consistent with the diversification of funding sources set out by 2016-2020 CDP Group Business Plan, demonstrates the trust from markets and investors in CDP’s solidity and in its financial strategy to promote the Italian economy.

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