(Finance) – UniCredit today successfully issued a Senior Non-Preferred bond with a 4-year maturity callable after 3 years for an amount of 1 billion Euros and a Senior Non-Preferred bond with a 10-year maturity for 1 billion Euros, aimed at institutional investors.
The amount issued completes the senior component of the funding plan for 2024 reserved for institutional investors, once again confirming the appreciation from investors and UniCredit’s ability to access the market in different formats.
The issue took place following a book building process which attracted overall demand for around 5 billion euros, with over 300 orders from investors globally.
Following the strong feedback received, the following conditions were set for the two tranches: – for the bond with a 4-year maturity callable after 3 years, the level initially communicated to the market of approximately 120bps above the 3-year mid-swap rate was revised and set at 85bps.
Consequently, the annual coupon was determined to be 3.875%, with an issue/re-offer price of 99.822%. The bond provides for the possibility of a single optional call by the issuer in the third year. 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 85bp; for bonds with a 10-year maturity, the level initially communicated to the market of approximately 180bps above the 10-year mid-swap rate was revised and set at 145bps.
Consequently, the annual coupon was set at 4.30%, with an issue/re-offer price of 99.904%.
The final allocation of the bond with a 4-year maturity, callable after 3 years, saw the prevalence of funds (71%) and banks (18%), with the following geographical distribution: France (22%), Italy (19%) ), UK (18%), BeNeLux (12%) and Germany/Austria (11%).
In relation to the bond with a 10-year maturity, the final allocation saw the prevalence of funds (64%) and pension/insurance funds (15%), with the following geographical distribution: UK (34%), France (28%) ), Germany/Austria (13%), Iberia (10%) and Italy (8%).
UniCredit Bank GmbH acted as Global Coordinator and Joint Bookrunner together with BBVA, Citi, Deutsche Bank, HSBC, ING, Intesa, JPM and SocGen.
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.