Shearman & Sterling advised the underwriters, led by UBS Limited, Citigroup Global Markets Limited, Goldman Sachs International and Mediobanca – Banca di Credito Finanziario S.p.A., in connection with Banca Monte dei Paschi di Siena S.p.A.’s (“BMPS”) capital increase of approximately €3 billion through a rights offering comprising the issuance of 2,547,771,200 ordinary shares.
The proceeds of the offering will be applied to strengthen the regulatory capital structure of BMPS following the European Central Bank’s Comprehensive Assessment and Asset Quality Review. The proceeds have also been used to repay in full the €1.071 billion nominal amount of outstanding New Financial Instruments held by the Italian Ministry of Economy and Finance.
Founded in 1472, BMPS is considered to be the oldest bank in the world and is one of the leading banking institutions in Italy with 2,185 branches serving 5.3 million retail and corporate customers.
The Shearman & Sterling team of lawyers in the firm’s London, Milan, Rome, Washington, DC and New York offices was led by Capital Markets partners David Dixter (London) and Tobia Croff (Milan) included associates Maria Antonietta Romeo (Rome), and Ana Grbec (London); trainees Nicolo’ Miglio (Milan), Camilla Di Matteo (Rome), and Carmelo Contente (Rome); and legal assistant Francesca Minoretti (London). Partner Kristen Garry (Washington, DC) and associate Judy Fisher (New York) assisted with the US tax aspects of the transaction.