Monte dei Paschi di Siena has hired a group of banks to issue a 10-year subordinated bond that will mark its return to the capital markets after being bailed out by the state last year, two market sources said. Monte dei Paschi's subordinated debt was converted into equity as part of the Tuscan bank's bailout due to European Union rules that require investors in a lender to share in the losses before the state can step in.

The bank has hired Goldman Sachs International and Mediobanca as global co-ordinators and joint bookrunners for the issue, the sources said. BofA Merrill Lynch, Barclays, J.P. Morgan, MPS Capital Services, UBS Investment Bank are joint bookrunners, they said, adding a series of investor meetings across Europe would start on Jan. 8.

Copyright Reuters, 2018