Banca Monte dei Paschi di Siena, EUR500 million tier 2 bond

In the transaction, A&O Shearman advised the financial institutions acting as the joint bookrunners.

The bond provides for a fixed annual coupon of 4.625% until March 9, 2032. From that date, should the issuer not exercise the call option (exercisable from December 9, 2031 to March 9, 2032), the coupon will be reset based on the five-year swap rate plus the initial spread. 

The bond is issued under Banca Monte dei Paschi di Siena’s Euro Medium Term Notes Debt Program and has been admitted to listing on the regulated market of the Luxembourg Stock Exchange.

A&O Shearman acted with a team led by partner Cristiano Tommasi, assisted by counsel Sarah Capella, senior associate Elisabetta Rapisarda, and associate Lisa Avitabile. Counsel Elia Ferdinando Clarizia advised on the tax aspects of the transaction.

Cristiano Tommasi, partner, commented: “The transaction confirms the market’s interest in instruments that combine capital strengthening needs with sustainability objectives. The continued relevance of green issuances confirm that sustainability is now a structural factor in the evolution of the capital markets.”