Mediobanca successfully completes the issue of a 5-year €750m covered bond. 70% of the orders from outside Italy

Mediobanca has today successfully completed the placement of a covered bond expiring at five years for a total amount of €750m. It is the first Italian covered bond to be issued in 2024, in a market scenario which has seen a high number of covered bond issues by Italian banks in recent quarters.

The covered bond, priced with coupon at 3.25% and yield at mid swap +65 bps, received orders of up to €1.4bn during the placement, which enabled the initial yield guidance (mid swap +70bps) to be reduced and the target size of €750m to be achieved. Of the orders placed, some 70% came from outside of Italy, with all the leading European investors featuring, offering further proof of the established role Mediobanca plays as issuer at European level.

Francesco Saverio Vinci, Mediobanca Group General Manager, commented as follows: "The success of this new issue, subscribed as to 70% by non-Italian investors, is further demonstration of the market’s confidence in and appreciation of Mediobanca and the growth prospects outlined in the 2023-26 Strategic Plan ‘One Brand-One Culture’. The result only strengthens our resolve to pursue the objectives we have set”.

The results of this new issue, in the current macroeconomic scenario, confirm the importance of a flexible approach to diversifying sources of funding. The issue of the first Italian covered bond in 2024 is a clear expression of this strategy, and is an important step in Mediobanca’s progression towards further growth.

Milan, 8 January 2024