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The issue had initially announced a EUR 150m-EUR 200m offering and went out with initial price guidance at the larger size at 7.875% area, tightening to final guidance 7.75% +/- 0.125%. Within an hour of marketing, the issue was covered and final demand amounted to more than EUR 450m, according to Bond Radar (www.bondradar.com), allowing pricing at the tight end of final guidance. The issuer had made itself available for one on one calls with investors when the deal was mandated yesterday.

Net proceeds of the offering will be down-streamed to Credito Emiliano S.p.A. and the bank will use the proceeds to finance and refinance eligible social assets in accordance with its social framework.

In Scope’s March 2022 monitoring note, Alessandro Boratti, lead analyst for Credem noted that the bank’s issuer rating is anchored by its sound business model, low-risk culture, and high degree of revenue diversification.

“The group has continued to grow in recent years, with higher loan volumes and wealth management commissions offsetting the impact on revenues of the adverse interest-rate environment,” Boratti said. “Asset quality is sound and capital buffers remain high at the same time as Credem has strengthened its market share in core products in its home market while maintaining a low risk profile.”

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