ABS

Italian Bank Slated to Debut Sale and Lease Backed Deal

Published November 8, 2010 2:28 PM EST 1 Min Read

Italian bank Banca Monte dei Paschi di Siena (Banca MPS), currently marketing a new Italian RMBS, has also brought to market a €1.5 billion ($2.08 billion) sale and lease backed deal, according to published reports.

The offering is a securitization of rental income derived from 683 bank branches and offices in Italy. These real estate assets are let to Banca MPS and its subsidiaries until July 2033.

The transaction’s capital structure, a Reuters report said, will offer two subordinated classes of securities targeting qualified professional investors.

Fitch Ratings has assigned the €1.5 billion class A notes a rating of ‘A-‘. The class A notes are scheduled to fully amortize by their expected maturity date in December 2030.

The offering is expected to enhance a significant part – around 61% – of the Montepaschi Group’s real estate and properties used in the business.

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