(Tiper Stock Exchange) – UniCredit today successfully issued Covered Bonds (OBG, Aa3 rating by Moody’s) in dual tranche format for a total amount of 3 billion euro with maturities of 3.5 and 7 years (both long), intended for institutional investors.
These are the first European Covered Bonds (Premium) issued in Italy compliant with the new European directive transposed on 30 March 2023, reopening the Italian covered bond market after several months.
The bonds are secured by a mortgage portfolio of approx. 28.8 billion euro of which 98.6% residential and 1.4% commercial, with a current weighted average LTV of 47.5%.
The issuance follows a book-building process which has attracted exceptionally strong demand of over €4.8 billion from approximately 200 institutional investors globally. The initial guidance of 35 basis points and 65 basis points over the reference mid-swap rates was reduced by 8 basis points and set at 27 basis points and 57 basis points respectively, with a fixed coupon of 3.375% paid annually, with a issue/re-offer price of 99.724% for the 3.5-year maturity and 3.5% paid annually, with an issue/re-offer price of 99.706% for the 7-year maturity.
The final allocation for the 3.5 year tranche was mainly in favor of banks and private banks (53%), funds (31%), institutions and central banks (14%), with the following geographical distribution: Germany/Austria (28%), Italy (25%), Spain/Portugal (15%), Nordic countries (11%), France (7%), United Kingdom (5%), Benelux (4%).
The final allocation for the 7-year tranche was mainly in favor of banks and private banks (62%), funds (28%), institutions and central banks (7%), insurance companies (2%), with the following geographical distribution: Italy (30%), Germany/ Austria (23% ), Benelux (13%), Nordic countries (13%), France (8%), Spain/Portugal (8%), United Kingdom (4%).
The amount issued is part of the 2023 Funding Plan and confirms once again the key role of UniCredit in the provision of mortgages and primary issuer of Covered Bonds, able to access the market in different formats / from different jurisdictions.
UniCredit Bank AG acted as Sole Global Structurer & Coordinator and BBVA, Commerzbank, Crédit Agricole CIB, Erste Group, IMI-Intesa Sanpaolo, Natixis and Santander as Joint Bookrunners.
The bonds, documented within the issuer’s Obbligazioni Bancarie Garantite European Covered Bond program guaranteed by UniCredit OBG srl, are ECB Eligible and LCR Level 1. They enjoy the preferential treatment provided for by art. 129 of the CRR and Solvency II and are compliant with the ECBC Covered Bond Label.
The listing will take place on the Luxembourg Stock Exchange.