FINANCING EUROPE’S ECONOMIC RECOVERY

Clients

Tuesday 27 April 2021

As European nations continue financing the economic recovery, UniCredit proves to be part of the solution in its core markets, acting as a key financial partner for the European Union and several of its member states by supporting them in recent debt issuances and placement.

2:00 min

UniCredit has continued to finance the economic recovery from the COVID-19 pandemic in its core markets with a spate of long-dated sovereign bond issuances, including four within five days in mid-April.

The spurt of activity is headlined by a EUR 4.75 bn April 2036 benchmark from the European Union (EU) issued on 21st April, for which UniCredit acted as Joint Lead Manager.

With this transaction, the EU has now raised 83.5% of the funds to support its EUR 90.3 bn worth of committed loans offered under the Support to mitigate Unemployment Risks in an Emergency (SURE) programme.

In Italy, UniCredit participated in the placement of a 22% stake of the recent BTP Futura through its own retail network. This is a EUR 5.5 bn bond entirely dedicated to individual and retail investors, contributing to financing the economic recovery and the Covid-19 vaccination campaign 

Previously UniCredit participated in a dual-tranche EUR 12 bn issuance from the Italian treasury. Split into a seven-year EUR 7 bn tranche, increasing the outstanding amount of an existing bond, and a new 50-year EUR 5 bn tranche, the bond extends the Italian treasury’s curve from 2067 to 2072. 

UniCredit also played an important role in Austria’s seven-times oversubscribed EUR 6.5 bn offering, comprising two tranches, one for EUR 4.5 bn with a four-year tenor and one for EUR 2 bn, with a 50-year tenor. This transaction represents the second largest sum ever raised by the state in a single syndication.

These deals were accompanied by two further issuances in Central and Eastern Europe. Acting as Joint Bookrunner, UniCredit supported the government of Romania with its debut bond issuance of 2021, for a total of EUR 3.5 bn, which was almost three times oversubscribed. 

Finally, UniCredit acted as Joint Bookrunner for the Slovak Republic’s first euro-denominated bond of 2021, a EUR 1.5 bn benchmark issuance with a 15-year maturity. More than 100 investors participated, with the final order book standing to more than EUR 6.6 bn.

Richard Burton, UniCredit’s Head of CIB said: “UniCredit continues to be part of the solution in its core markets. These transactions demonstrate that the strength of UniCredit’s value chain is key in supporting the post-COVID-19 economic recovery in Europe”.