By Laura Contemori – ROME (Econostream) – Italian bank Banco BPM on Tuesday priced €500 million of green subordinated Tier 2 notes.

The notes mature on January 7, 2038 and are callable on January 7, 2033, subject to regulatory approval. The notes carry an initial fixed annual coupon of 4.125%, with a single reset on January 7, 2033.

The reoffer spread was set at 143bp over mid-swaps, with a reoffer price of 99.590 and a yield of 4.202%.

The notes are expected to be rated Baa3 by Moody’s, BB by S&P, BB+ by Fitch and BBB (low) by DBRS Morningstar.

An amount equivalent to the net proceeds will be allocated to finance or refinance, in whole or in part, eligible green loans under Banco BPM’s Green, Social and Sustainability Bonds Framework.

Settlement is scheduled for July 7, 2026.

The notes will be listed on the regulated market of the Luxembourg Stock Exchange and are governed by Italian law.

Banca Akros, Citi, Crédit Agricole CIB, Goldman Sachs International, HSBC, Natixis, Santander and Société Générale acted as joint lead managers. Crédit Agricole CIB acted as ESG advisor.

The time of execution was 16:51 CET (15:51 UK time).