EUR 1.25 billion Senior Preferred 6NC5 Fixed to Floating Rate underwritten by ca 150 institutional investors with an order-book of more than EUR 2.5 billion
UniCredit has launched today its first Senior Preferred benchmark out of its 2020 Funding Plan, with a 6 year maturity and a call after 5 years for an amount of EUR 1.25 billion.
The transaction has been highly successful gathering a very positive market response. As a consequence, the price guidance initially set at Mid Swap + 185 bps has been revised down to a final spread of 160 bps confirming once again UniCredit's appreciation by the fixed income investors base.
The bond pays a fixed coupon of 1.25% during the first 5 years, and has an issue price of 99.563%, equivalent to a spread of 160 bps over the 5 year swap rate.
The bond has a one-time issuer's call at year 5, in order to optimize the regulatory efficiency. Should the call not being exercised after 5 years, the coupon for final year until maturity will reset to a floating rate equal to the 3-month Euribor plus the initial spread of 160 bps, paid quarterly.
The bond has been distributed to different institutional investors' categories such as funds (76%), banks/private banks (19%) and insurance/pension funds (3%). The demand came from the following main regions: France (21%), Italy (21%), Nordics (16%), Germany/Austria (12%) and UK (9%).
The bond, documented under the issuer's Euro Medium Term Notes Program, will rank pari passu with the outstanding Senior Preferred debt of the issuer. The expected ratings are as follows: Baa1 (Moody's) / BBB (S&P) / BBB- (Fitch).
Listing will be on the Luxembourg Stock Exchange.
Milan, 9 June, 2020
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