(Finance) – The bond issuance activity continues UniCredit in direct negotiationwith the aim of further expanding the range of solutions designed for investors looking for return opportunities in the fixed income segment.
UniCredit presents two new Bonds directly tradable on the MOT and Bond-X market of the Italian Stock Exchangetherefore available to all investors, who will be able to trade them directly from their securities account regardless of the supporting bank. Both have a duration of 10 years and pay variable coupons linked to Euribor3m, one quarterly and the other annually, but they differ in their respective rate calculation mechanisms.
In a situation of uncertainty on rates, and considering the response to the market of the latest variable rate bonds with leverage on the 3-month Euribor (IT0005617375 and IT0005621450 which paid respectively three fixed premiums and two initial fixed premiums and subsequently a variable rate equal at the 3-month Euribor rate multiplied by a participation factor of 150% and 160%), the new Bonds were designed to offer differentiated solutions for those who wish to invest at a mixed or variable ratewith calculation mechanisms that allow us to capture any increases (or mitigate the decrease) in rates over the years.
In particular, the bond “Fixed to Floater” combines a fixed rate in the first year equal to 5.75%, and from the second to the tenth year a variable rate equal to the 3-month Euribor rate multiplied by a participation factor equal to 2 times, while the bond “Superfloater” does not provide an initial fixed rate and offers higher leverage on the 3-month Euribor rate (160%) and with a higher cap (6.00%).
From January 15th to February 5th 2025based on market conditions and in line with the regulation of MOT and Bond-X, the bonds will be offered on the market at a price equal to 100% of the issue price. Liquidity on the market is guaranteed by UniCredit, therefore it will be possible to resell the securities before their natural maturity. The redemption value at maturity is equal to 100% of the nominal value, while during the life of the bonds the price will follow market conditions.