Banco Popolare is offering a zero coupon bond to Italian investors who invested in structured products backed by struggling Icelandic banks and sold by life firms UGF and Eurovita Assicurazioni back in 2005, when the derivatives counterparty or bond provider was an Icelandic bank.
Serie 149 Zero Coupon will deliver the nominal amount in April 2015, based on an original issue price of 80.75%.
The new bond, which is available between 8 February and 12 March 2010, covers an overall €138m of original investments in a range of structured products including: Bipielle Aphrodite II Serie Index I/2005, Bipielle Magnolia Index II/2005 and Bipielle Azalea Index III/2005 from UGF Assicurazioni, as well as the corresponding issues marketed by Eurovia Assicurazioni at the same time under the names Bipielle Aphrodite Serie II, Bipielle Magnolia and Bipielle Azalea.
These products were originally intended to reach maturity in March 2009, May 2009 and June 2010, respectively, but were affected by the collapse of Landsbanki, Kaupthing and Glitnir banks back in 2008.
Investors had been subject to a moratorium on moving funds out of the product until November 2009.
These products appear on the Italian database.