Monte Paschi Raises €500 Million as Mediobanca Deal Cleared

Banca Monte dei Paschi di Siena raised €500 million ($580 million) of debt after the European Central Bank approved its takeover of Mediobanca SpA.

Monte Paschi, the world’s oldest bank, sold the Tier 2 bonds first callable in 2030 with a spread of 215 basis points over mid-swaps, tightened from initial price discussions at around 235 basis points, according to a person familiar with the matter who asked not to be identified. Investor bids closed above €1.05 billion, the person added. Tier 2 bonds help bolster bank capital ratios, and rank lower in priority for repayment than senior debts.