Hogan Lovells advises Banca Monte dei Paschi di Siena on Tier 2 subordinated bonds

Milan/Rome – International law firm Hogan Lovells has advised Banca Monte dei Paschi di Siena (BMPS), on the issuance of Tier 2 subordinated bonds reserved to institutional investors for a nominal value of EUR 300 million. The issuance is instrumental to a non-proportional partial demerger with an asymmetric option of a compendium, made up of, amongst others, impaired loans by BMPS in favour of AMCO – Asset Management Company S.p.A. The issuance meets one of the key conditions set by the ECB to authorize the transaction, as noted in the Final Decision of the ECB dated 2 September.

The issuance has received strong interest from the market with orders exceeding initial expectations. This has led to an increase in the amount of the issuance [EUR 250 million] that was originally announced.

The bonds have a ten-year maturity with a 8.5% fixed annual coupon (early redemption is possible after five years from the issuance, at the issuer's option, subject to approval of the relevant authorities) and have been issued under the Debt Issuance Programme of the bank and listed on the Luxembourg Stock Exchange.

The Hogan Lovells’ Capital Markets team advising MPS includes, partner Corrado Fiscale, counsel Annalisa Feliciani and associates Matteo Scuriatti and Alessandro Azzolini. Senior associate Maria Cristina Conte advised on tax issues.


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