(Finance) – UniCredit today successfully placed a Tier 2 bond for an amount of €1 billion, aimed at institutional investors, reaffirming its solid investor base and its ability to access the market in different formats.
The bond, with maturity in 10 years and 3 months, recallable after 5 years and 3 months, pays a fixed coupon of 5.375% until April 2029 and has an issue price of 99.847%, equivalent to a spread of 280 basis points over the reference swap rate. If the issuer does not exercise the call option, the coupon will be reset based on the 5-year swap rate applicable at that time, increased by the initial spread.
Given strong market interest and considerable order volume, spread guidance initially set at 315 basis points over mid-swap was ultimately reduced to 280 basis points.
The operation met a strong demand from more than 200 institutional investors and orders that exceeded 3 billion euros.
The final allocation saw the prevalence of funds with 67% and the following geographical distribution: UK (31%), France (18%), Italy (14%), Nordic countries (10%) and Germany/Austria (10%). %).
UniCredit Bank held the role of Global Coordinator and Joint Bookrunner together with Barclays, BNP, Mediobanca, Morgan Stanley, Santander and UBS.
The bond, which represents UniCredit’s first Tier 2 issue since 2020, is documented under the issuer’s Euro Medium Term Notes program and, due to its subordinated status, has the following expected ratings: Ba1 (Moody’s) / BB+ (S&P). The bond will be included in UniCredit’s regulatory capital, contributing to the Total Capital Ratio.
The listing will take place on the Luxembourg Stock Exchange.