Credito Emiliano SpA issued €750 million in five-year covered bonds, the Italian lender said Jan. 10.
The instruments carry a 1.125% coupon, corresponding to 95 basis points above the midswap rate. The final price represents a discount of 84.9 basis points against the Italian government bond curve.
The notes, which are backed by Italian prime residential mortgages, represent the first covered bond issued by an Italian bank since July 2018, Credem said.
Credem noted that the bonds attracted orders of over €925 million from more than 70 investors. Most of the buyers were from Germany, Australia and Switzerland.
A syndicate comprising Barclays, Crédit Agricole CIB, SG CIB and UniCredit served as placement manager on the transaction.