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Monday, December 11, 2017

Five-year bond issue raises $1.25 billion for Intesa Sanpaolo

Intesa Sanpaolo, the second largest banking group in Italy after Unicredit Group, recently launched a senior bond issue targeted at the U.S. and Canadian markets that totals $1.25 billion.

Banca IMI, Citigroup, Goldman Sachs and JP Morgan Securities are the joint lead managers of the bond offering.

It is a fixed-rate bond that will be issued under the U.S.$ Medium Term Notes Program of Intesa Sanpaolo and will have a maturity of five years and two months.

The bond will be exempt from registration in the U.S. under Section 3(a)(2) of the U.S. Securities Act, as guaranteed by the New York branch of Intesa Sanpaolo, and exempt from registration in the Canadian provinces of Ontario and Quebec on the basis of the exemptions applicable to initial placements reserved only for institutions investors.

The coupon, payable semi-annually in arrears on every January 15 and July 15, is equal to 3.875 percent per annum. The re-offer price is 99.981 percent.

Intesa Sanpaolo is a banking group resulting from the merger between Banca Intesa and Sanpaolo IMI, based in Turin, Italy.

In addition to its clear leadership in the Italian market, Intesa Sanpaolo has a minor but growing international presence focused on Central-Eastern Europe, the Middle East and North Africa.