J.P. Morgan announces potential market stabilization for Banco BPM

Published 01/14/2025, 04:04 AM

LONDON - J.P. Morgan S.E has disclosed potential stabilization actions for Banco BPM S.p.A’s latest securities offering, which commenced today. The firm, serving as the stabilization coordinator, may engage in transactions to support the market price of the securities.

Banco BPM, an Italian banking group, is issuing EUR 500 million worth of 5-year Fixed Rate Senior Preferred Notes, with the Luxembourg Stock Exchange as the listing venue. The offer price is yet to be confirmed.

The stabilization period, which started today, is expected to last until no later than February 14, 2025. During this time, J.P. Morgan S.E, along with other stabilization managers including Banca Akros, BNP Paribas (OTC:BNPQY), Credit Agricole (OTC:CRARY) CIB, Deutsche Bank (ETR:DBKGn), Goldman Sachs International, and Santander (BME:SAN), may over-allot securities or undertake other measures to avoid price fluctuations.

The stabilization efforts, if initiated, aim to maintain the securities' market price above the level that might prevail in the open market. However, there is no guarantee that stabilization will occur, and if started, it can be halted at any time within the set period.

The over-allotment facility allows the stabilization managers to exceed the original amount of securities by up to 5%, ensuring they do not surpass 105% of the initial aggregate principal amount.

These transactions may take place on over-the-counter venues, with the specifics to be confirmed. It's important to note that the stabilization action is subject to regulatory rules under the Market Abuse Regulation.

The announcement clarifies that this information is strictly for those with professional investment experience or high net worth individuals in the United Kingdom (TADAWUL:4280), and it should not be relied upon by other UK residents. Similarly, in the European Economic Area, the offer is directed only at qualified investors.

This press release statement confirms that the securities in question have not been registered under the United States Securities Act of 1933 and, therefore, cannot be offered or sold within the United States absent registration or an applicable exemption. Consequently, there will be no public offering of these securities in the United States.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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