Banca Monte dei Paschi di Siena €1.7 billion SME securitisation

Overview:

• Banca Monte dei Paschi di Siena has undertaken a securitisation of SME loans worth around €1.7 billion.
• The issue consisted of senior and mezzanine notes listed on the Luxembourg Stock Exchange.
• The bank acted as originator, arranger and sole underwriter on the deal.
• The deal comes as the world's oldest bank faces an uncertain future having failed to secure a private investment rescue plan and with the Italian government looking to step in to bail it out.
• Although the bank is relatively small in the Italian market there are concerns that any investor uncertainty around it could spread to other financial institutions.

Sam Duke - Editor