February 8, 2020 / 3:41 PM / 17 days ago

Italy's BPER Banca assessing possible sale of subordinated bond - CFO

BRESCIA, Italy, Feb 8 (Reuters) - Italy’s sixth-largest bank BPER Banca is considering taking advantage of favourable market conditions to issue a subordinated bond, its chief financial officer said on Saturday.

Reaping the benefits of successful restructuring efforts and a more stable political situation at home, Italian banks have seized a strong start-of-the-year market momentum to sell debt, including riskier - and costlier - subordinated bonds.

Mid-sized Italian banks Banco BPM and UBI Banca have met strong demand for so-called Additional Tier 1 bonds, the riskiest type of debt which counts towards a lender’s Tier 1 capital and can replenish its common equity if needed.

Asked if BPER could follow in their tracks, BPER CFO Roberto Ferrari told Reuters the bank had not decided yet what type of subordinated debt it may issue, adding the preference was for a Tier2 bond though an AT1 sale was not ruled out.

“We’re aware the market right now is strong ... we’ll see if it is exceptionally strong,” he said on the sidelines of the Assiom-Forex conference. (Reporting by Valentina Za Editing by Ros Russell)

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