(Finance) – UniCredit today successfully issued a Senior Non-Preferred bond with a 4.5 year maturity callable after 3.5 years for an amount of 1 billion Euros and a Senior Non-Preferred bond with an 8 year maturity callable after 7 years for 1 billion of Euros, aimed at institutional investors.
The issue, explains a note, took place following a book building process which gathered overall demand
for approximately 5.6 billion Euros, with over 290 orders from investors globally.
Following the received strong feedbackthe following conditions were set for the two tranches: for the bond with a maturity of 4.5 years, callable after 3.5 yearsthe level initially communicated to the market of around 130bps above the 3.5-year mid-swap rate was revised and set at 98bps. Consequently the annual coupon was determined equal to 3.30%, with an issue/re-offer price of 99.877%. The bond provides for the possibility of a single call by the issuer in July 2028. If the bond is not called, the coupons for subsequent periods until maturity will be set on the basis of the 3-month Euribor plus the initial spread of 98bp; for the bond with an 8-year maturity, callable after 7 yearsthe level initially communicated to the market of around 170bps above the 7-year mid-swap rate was revised and set at 140bps. Consequently the annual coupon was determined equal to 3.80%, with an issue/re-offer price of 99.710%. The bond provides for the possibility of a single call by the issuer in January 2032. If the bond is not called, the coupons for the periods
subsequent periods until maturity will be set on the basis of the 3-month Euribor plus the initial spread of 140bps.
The final allocation of the bond with a maturity of 4.5 years, callable after 3.5 years, saw the prevalence of funds (67%) and central banks (18%), with the following geographical distribution: France (27%) , UK (21%), Iberia and BeNeLux (11% each).
In relation to the bond with an 8-year maturity, callable after 7 years, the final allocation saw the prevalence of funds (70%) and banks (10%), with the following geographical distribution: France (39%), UK ( 22%), Germany/Austria (14%) and Iberia (6%).
UniCredit Bank GmbH held the role of Global Coordinator and Joint Bookrunner together with Barclays, Erste Group, HSBC, IMI – Intesa Sanpaolo, ING, Mediobanca, Natixis and Santander. The notes, documented under the issuer’s Euro Medium Term Notes program, will rank pari passu with outstanding Senior Non-Preferred debt. The expected ratings are as follows: Baa3 (Moody’s) / BBB- (S&P) / BBB (Fitch).
The listing will take place on the Luxembourg Stock Exchange.