BPER issues €500 million in AT1 bonds after 16.4% profit growth
Key Facts
BPER issued €500 million in perpetual additional Tier 1 (AT1) bonds in May 2026, according to an official statement from the bank. The issuance came amid improved profits and capital in the first nine months of the year, but does not by itself prove that those results were the reason the bank chose this type of financing. It was the second AT1 issuance recorded in the available record during the period, following a €750 million issue in November 2025. AT1 bonds are perpetual, subordinated capital instruments, and their terms may include a write-down of nominal value if the capital ratio falls below a specified threshold. The first potential call date therefore does not represent a guaranteed maturity date for investors.
BPER set 26 September 2031 as the first call date for its May 2026 issuance, while the reset spread was 325.6 basis points. The bank said this was the lowest spread in the history of its AT1 issuances and 32 basis points below the previous November issue. This reflects the comparison of reset costs between the two issues as presented by the bank, not an all-in funding cost that can be inferred from the spread alone. The available statement did not provide pricing data for a new issue in November 2026 or details of its order book. The evidence also contains no confirmed details of the size of a new offering that month.
For the May issue, investor orders peaked above €2 billion, with about 130 investors participating, according to BPER's statement. The bank said strong demand allowed it to cut initial coupon guidance from about 6.625% to 6.20%. These figures relate to the May 2026 issue and do not describe a later offering. The terms were attached to a perpetual bond callable on its specified first call date, with coupon payments subject to the issue's restrictions and conditions. The terms also include a temporary write-down of nominal value if the bank's or group's CET1 ratio falls below 5.125%.
BPER's results for the first nine months of 2026 showed adjusted net profit rising to €2.01 billion, up 16.4% year on year, according to a Reuters report published via Euronext. In the third quarter, net interest income was €1.16 billion, an increase of about 8% from the same period in 2025. Reuters attributed the increase to higher interest rates. The bank's CET1 ratio was 15.1% on 30 September 2026, while gross and net non-performing loans stood at 2.3% and 1.1%, respectively. These indicators put the issuance in a financial context marked by profit growth and capital above the threshold set by the bank in its guidance.
BPER upgraded its 2026 guidance, targeting a cost of risk below 35 basis points and a CET1 ratio above 14.5%. Its previous cost-of-risk forecast was about 40 basis points, according to a Reuters report via Investing.com. The bank also announced an interim payment from 2026 profits of €0.33 per share, totaling €694 million. The guidance combines a lower cost-of-risk target with a capital target above 14.5%, alongside a payment to shareholders. The reported results do not establish a causal relationship between those decisions and the AT1 bond issuance in May.
The May issue followed a €750 million AT1 bond offering in November 2025, with a fixed coupon of 5.875% until its first reset and first call on 19 March 2031, according to BPER's statement. Investor orders then peaked above €2.25 billion. In the following May, the bank recorded a lower reset spread than on that issue, alongside a final coupon of 6.20% after the initial guidance was cut. The comparison shows differences in pricing terms between the two issues, with each remaining subject to its own conditions. The available evidence contains no specific date for a later new offering or announced timing for a future financing step.