March 15, 2017 / 5:28 PM / 6 months ago

Monte dei Paschi issues 4-bln-euro state-guaranteed bond

MILAN, March 15 (Reuters) - Troubled Italian bank Monte dei Paschi di Siena said on Wednesday it had issued a new bond guaranteed by the state for 4 billion euros ($4.3 billion), as it works to rebuild its liquidity after a deposit flight late last year.

The bond matures on March 15, 2020, and pays a 0.75 percent coupon, compared with a 0.43 percent yield on a government bond with the same maturity.

The bank said it would keep the bond for the time being and would sell it on the market later, or use it as collateral in refinancing operations.

Monte dei Paschi first tapped the state guarantee Italy introduced in December to support liquidity at struggling lenders in January, issuing two bonds for a total of 7 billion euros.

$1 = 0.9401 euros Reporting by Valentina Za, editing by Steve Scherer

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