Banca BPER’s offensive on the markets makes investors and account holders happy

BPER Banca’s offensive starts. The bank at the center of the banking risk, reopened with the Intesa-Ubi operation, has two paths, either to be prey or to be a predator. Tertium non datur. The Emilian institute seems to want to choose to be a predator and Banca BPER’s offensive on the markets makes investors and account holders happy. Here because.

Prey or predator? This is the dilemma

The bank cannot remain in the stand alone position for long. Insulation can only be splendid if it is beneficial and you have the strength to maintain it. BPER does not have the strength and, perhaps, not even the advantage.

Alessandro Vandelli, managing director, knows this and is preparing for the offensive. How? By strengthening the artillery, which for a bank means increasing the available corporate capital.

This could serve two purposes. To launch a purchase offer. Or to defend itself in the event of a willingness to take over BPER by a predatory bank, probably foreign.

So the bank has just raised 400 million euros on the market with a bond. A 10-year subordinated Tier 2 bond with a fixed annual coupon and with the possibility of calling in 2025.

Banca BPER’s offensive on the markets makes investors and account holders happy

The Tier 2 subordination it means that in the event of the issuer’s bankruptcy, first all ordinary bonds are redeemed and only after the subordinated Tier 2. Call in 2025, does it mean that the issuer can redeem the bond early, in 2025.

Why are call and subordination important? Because they allow the bond to have a higher yield than the same bond without subordination and without call. In fact, the requests for the title were 1 billion and the yield stood at about 3.6%. In these times, they are very high returns.

What is the fate of the bank? The operators bet on an even marriage with Banco BPM. It would be the most logical solution. The third Italian banking group would emerge. To the delight of account holders and shareholders.

The markets have been betting on this solution for a few days. And there would also already be the name, Banca Popolare Milanese e dell’Emilia Romagna, BPMER. Banco BPM and BPER Banca gained 3.75% and 4.1% respectively on Friday. The price rush may just be at the beginning.


This the analysis of the Bper stock of the ProiezionidiBorsa Study Office

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