Novo Banco mandates syndicate to place 500 million in bonds – Bonds

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O Novo Banco mandated a banking syndicate for a covered bond placement. The news is announced this Monday by Bloomberg, which indicates that the operation will be led by Barclays, together with Crédit Agricole, Deutsche Bank, IMI-Intesa Sanpaolo and LBBW.

At issue will be the placement of 500 million euros in covered bonds – debt securities guaranteed by a set of assets -, with a maturity of three years, according to the North American news agency.

Although a specific date for the operation has not been announced, this should occur soon, subject to market conditions. A Novo Banco’s last bond issue was in May 2023, when it placed 500 million euros in subordinated debt. At the time, the institution, which is led by Mark Bourke, only intended to finance itself with 400 million, but demand three times greater than supply led it to increase the value.

Novo Banco ended 2023 with profits of 743.1 million euros, the highest amount ever. Compared to the previous year’s results, it represented an increase of 32.5%.

“In 2023, the bank delivered a set of strong results, exceeding all financial targets and demonstrating a consistent track record of execution and delivery,” said Mark Bourke, the bank’s CEO, at the time.