Bond issuance
AMCO SUCCESSFULLY ISSUES TWO SENIOR UNSECURED BONDS WITH 3-YEAR AND 7-YEAR MATURITY, TOTALLING €2 BILLION
· 243 investors took part in the deal; more than 60% of allocations to foreign investors
· The book was 2.5 times oversubscribed, and the final size of the issuance was €2 billion · The deal proves AMCO’s capabilities to consolidate a stable investor base
Milan, July 9th, 2020. Today AMCO successfully priced a dual tranche senior unsecured transaction, respectively totalling a notional amount of €1,250 million with a 3-year maturity, and €750 million with a 7-year maturity. The order-book of the two tranches reached a total €5 billion from 243 institutions, representing 2.5 times the final offer amount, which is proof of the high level of interest received from the market.
This issuance proves AMCO’s capabilities to consolidate a stable investor base spread across different geographies, with more than 60% of allocations to foreign investors. Investors participating in the deal include asset managers, banks and financial institutions.
The 3-year bond was priced with a fixed yearly coupon of 1.500%, and an issuance price of 99.752%. The 7-year bond was priced with a fixed yearly coupon of 2.250%, and an issuance price of 99.486%. As a proof of the strong interest raised by the deal, the initial price indications were reduced in the course of the day by up to 35 basis points. The final amount issued was €2 billion. Settlement is expected to occur on July 17th, 2020.
The notes will be listed on Luxembourg Stock Exchange’s Regulated Market. The maturity date of the 3-year bond is July 17th, 2023, and the maturity date of the 7-year bond is July 17th, 2027. The bond, reserved to institutional investors, was issued under the AMCO’s Euro Medium Term Note Program and has expected ratings of BBB (Standard & Poor’s) and BBB- (Fitch).
UBS Europe SE and J.P.Morgan Securities Plc acted as Global Coordinators, and Equita, Morgan Stanley, Societè Generale and UniCredit as Joint Lead Managers of the offering. RCCD and Clifford Chance acted as legal advisors to AMCO and to the banks respectively
