Issue of Cassa Depositi e Prestiti bonds. Cdp: requests for over 3.5 billion from around 100 thousand subscribers

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By John

Cassa Depositi e Prestiti’s retail bond offering has met with considerable success, exceeding expectations with requests for over 3.5 billion euros from approximately 100,000 subscribers. In response to the exceptional demand, the initial amount of 1.5 billion euros was increased to reach the maximum limit of 2 billion. Consequently, the placement period, initially set from 7 to 27 November 2023, was brought forward and concluded on 15 November.

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Each applicant will receive a number of bonds corresponding at least to the minimum investment of 1,000 euros. For any excess amount, the distribution of the bonds will take place according to the final terms of the offer.

These bonds, intended for natural persons resident in Italy, have the objective of mobilizing resources to support the growth of the country. The bonds offer a mixed remuneration: a fixed rate of 5.00% for the first three years, followed by a variable rate, equal to the 3-month Euribor plus 0.90% per annum, for the following three years. Furthermore, there is a preferential tax rate of 12.50%.

The issue date is set for 4 December 2023 and the expiry for 4 December 2029. The bonds will be traded on the MOT of the Italian Stock Exchange, with the start of trading scheduled for the date to be announced on the CDP website.

Intesa Sanpaolo and UniCredit acted as placement managers and coordinators of the offer.

Regarding ratings, CDP has received medium-long term ratings of Baa3 from Moody’s, BBB from S&P, BBB from Fitch and BBB+ from Scope, with a bond rating of BBB from S&P.

All the details of the offer, including the terms and conditions, are available in the information prospectus on the CDP website (www.cdp.it/obbligazioni2023), as well as from the placement managers and placers