Press release

CDP has closed successfully its € 1 billion bond issue

Demand strongly outstripped supply

  • The funding raised will finance investments supporting the growth and competitiveness of the Italian economy, in line with CDP’s statutory mission as National Promotion Institution 
  • The transaction is part of the strategy for the diversification and stabilisation of funding sources
  • The success of the transaction is proof of the confidence of institutional investors in CDP
Rome, 14 June 2017 h 8:29 pm

Today, Cassa depositi e prestiti Spa (CDP) has successfully placed a bond, reserved for institutional investors, having a nominal value of € 1 billion, at fixed rate, not subordinated and not backed by guarantees. The issue, which is part of CDP’s medium-long term Debt Issuance Programme (DIP) amounting to € 10 billion, listed in the Luxembourg Stock Exchange, has a duration of 7 years (maturity June 2024), with an annual coupon of 1.5% and a price of 99.310%.

In view of the strong demand of € 1.8 billion, which came from more than 130 investors, the pricing was fixed at 123 basis points above the reference mid-swap rate, about 7-12 basis points lower than the initial range of pricing guidance. Foreign investors responded with great interest to the issue, subscribing for nearly 50% of the total.

Specifically, 17% was subscribed by French investors, 12% by German and Austrian investors, 7% by Swiss, 4% by Dutch, 4% by Spanish and Portuguese investors, 4% by British and Irish investors, and the remaining 3% by investors from the rest of the world. In terms of types of investors, 48% of subscribers were banks, 47% investment funds and management companies, 3% insurance companies, and the remaining 2% central banks and other investors.

The securities, which will be traded on the Luxembourg Stock Exchange, have CDP's medium-long term rating, which is the same as the Italian Republic’s, hence BBB- (stable) for S&P, Baa2 (negative) for Moody’s and BBB (stable) for Fitch.

The issue was arranged by Banca IMI, BNP Paribas, Deutsche Bank, Goldman Sachs International and J.P. Morgan, which acted as Joint Lead Managers and Joint Bookrunners and the funds raised will finance the so-called Separate Account, such as investments of general economic interest supporting the growth and competitiveness of the Italian economy.

 

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