Mediobanca has successfully completed the issue of a new €300m subordinated Tier 2 bond

Mediobanca has successfully completed the placement of a new subordinated Tier 2 bond with a duration of 10.25 years (expiring in April 2034) and call option at April 2029, for a total amount of €300m.

The bond has attracted broad and diversified appeal, enabling the yield initially disclosed to be revised (305 bps above mid-swap) and set at 275 bps.
Orders in excess of €1.5bn were received during the placement, for a total value more than 5x the target amount of €300m.

The new bond, which represents the first Mediobanca subordinated bond issue in dematerialized form for institutional investors centralized at Monte Titoli, will pay a coupon of 5.25%, and means that, following the senior non-preferred bond issue completed in September 2023, 50% of the capital instruments issuance programme (or “debt capital strategy”) provided for in the Strategic Plan “One Brand-One Culture” has now been completed.
With this issue Mediobanca has consolidated its position as one of the leading Italian banks in terms of efficiency of pricing for its debt instruments, and confirmed investor confidence in the new three-year strategic plan.

Leading international institutional investors have featured highly in the bond's distribution, accounting for over 70% of the orders (of which orders from the United Kingdom, Ireland, Germany, Austria and Switzerland in particular made up 40%), as have the main Italian institutional investors (accounting for 28%). The performance of this issue confirms once again both investors’ appreciation and Mediobanca's capability to diversify its sources of funding.

Milan, 15 January 2024