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Monte dei Paschi Issues 300 mln Euro Tier 2 Bond

MILAN, Sept 3 (Reuters) - Monte dei Paschi issued on Thursday a 300 million euros ($354 million) ‘Tier 2’ bond, a key part of plans by Italy’s Treasury to prepare its exit from the bailed-out bank.

The sale of the bond, which counts towards the bank’s second-tier capital, is one of the conditions set by the European Central Bank to authorise a bad loan clean-up scheme designed to help the Rome government find a buyer for the bank.

Italy owns 68% of the Tuscan bank following a 2017 bailout and must sell that stake by the end of next year based on the terms of the rescue negotiated at the time with European Union competition authorities.

An investor document obtained by Reuters showed the yield on the 10-year bond was set at 8.5% after initial indications at around 9%.

The bank revised the size of the issue to 300 million euros from an initial 250 million.

Morgan Stanley is the sole active bookrunner on the issue, while MPS Capital Services and Barclays are other bookrunners.

$1 = 0.8463 euros

Reporting by Sara Rossi, writing by Valentina Za, editing byGianluca Semeraro and Mark Potter

Source: Reuters

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