INTESA SANPAOLO LAUNCHES A NEW BENCHMARK SUBORDINATED LOWER TIER II OF €1 BILLION

Torino, Milano, 15 May 2008 – Today, Intesa Sanpaolo has launched a €1 billion subordinated Lower Tier II eurobond issue targeted to international markets.

It is a ten-year, fixed rate bond, callable after 5 years, issued under the Euro Medium Term Notes Programme of Intesa Sanpaolo.

The amount is basically equal to that of issues of the same kind maturing during 2008.

The coupon, payable annually in arrears on 28 May of each year from and including 28 May 2009 up to the maturity date, is equal to 5.75%.

Such coupon will step up by 60 basis points on 28 May 2013, if the early redemption option is not exercised by the Issuer.

The re-offer price is 99.704%.

Considering that it was re-offered below par, the yield calculated at the early redemption date is equal to 5.82% p.a. equivalent to 5 years mid swap rate plus 138 basis points.

Settlement is due on or about 28 May 2008.

Minimum denomination of the bond issue is Euro 50 thousand and multiple.

The bond is not offered to the Italian retail market; it is distributed to international institutional investors and financial institutions. It will be listed on the Luxembourg Stock Exchange and, as usual, traded in the Over-the-counter.

Banca IMI, Goldman Sachs, and Royal Bank of Scotland act as joint lead managers for the placement of the bond.

The ratings assigned to Intesa Sanpaolo’s senior long-term debt are: Aa2 by Moody’s, AA- by Standard & Poor’s and AA- by Fitch.

This communication does not constitute an offer or an invitation to subscribe for or purchase any bonds.  The bonds have not been and will not be registered under the United States Securities Act of 1933 (as amended) (the "Securities Act").  Subject to certain exceptions, the bonds may not be offered, sold or delivered within the United States or to U.S. persons.  The bonds may be offered and sold outside the United States in reliance on Regulation S under the Securities Act and in the United States to qualified institutional buyers (as defined in Rule 144A under the Securities Act) in reliance on Rule 144A.

 

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