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BPSO Tier 2 Issue: IPT MS+325bp, We See FV Closer To +280bp

FINANCIALS

B.Pop Sondrio (BPSO IM) coming to market with Tier 2 issue – pricing thoughts:


  • BPSO only has one T2 bond out, issued Nov-21 and of a similar (sub-benchmark) size so there’s little curve to work with.
  • Italian peers BPER and BPM (see graphic) have three and four outstanding and ISPIM has four out, including one at similar duration.
  • IPT is at MS+325bp, we can see this tightening towards 280bp but that one-notch diferential up to ISPIM’s BB+ bond at 239bp (which is also EUR1bn) does need quite a discount, in our view.

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