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UniCredit successfully issues USD Dual-Tranche benchmark callable 6NC5 and 11NC10 Preferred Senior Transaction for USD 2 billion

UniCredit SpA has issued USD1,000,000,000 of Fixed to Fixed Rate Senior Preferred Notes, with a 6 year maturity and a call after year 5, and USD1,000,000,000 of Fixed to Fixed Rate Senior Preferred Notes, with a 11 year maturity and a call after year 10, targeted to institutional investors for a total amount of USD 2 billion.

 

The bonds are TLAC/MREL eligible and contribute to provide liquidity to the USD credit curve.

 

On the backdrop of a book building process that gathered more than USD 8 billion strong demand from approx 200 investors distributed across the world, of which almost 70% from North America, the initial guidance has been tightened by 25bps achieving the following characteristics for the Notes:

 

-  for the 6NC5 tenor, coupon at 1.982%, per annum for the initial 5 years on a semi-annual basis, equivalent to 120bps over 5 years US Treasury rate. If not redeemed by the Issuer, coupon will be reset to the aggregate of the 1 year US Treasury rate plus 120bps, around 80bps lower than the 2017 USD inaugural senior preferred issuance including the cost of the call;

-   for the 11NC10 tenor, coupon at 3.127%, per annum for the initial 10 years on a semi-annual basis, equivalent to 155bps over 10 years US Treasury rate. If not redeemed by the Issuer, coupon will be reset to the aggregate of the 1 year US Treasury rate plus 155bps, around 85bps lower than the 2017 USD inaugural senior preferred issuance including the cost of the call.

 

Both tranches have an issue/re-offer price of 100.00%.

 

The Notes have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may only be sold (i) to qualified institutional buyers, as defined under Rule 144A of the Securities Act, in transactions exempt from registration under the Securities Act and (ii) in accordance with Regulation S of the Securities Act or pursuant to another applicable exemption from the registration.

 

BofA Securities, Citi, Goldman Sachs International, J.P. Morgan, Morgan Stanley, TD Securities and UniCredit have managed the placement and acted as Joint Bookrunners for the Notes.

 

The bonds will be issued pursuant to the GMTN Programme and are expected to have the following ratings: Baa1 (Moody's) / BBB (S&P) / BBB- (Fitch). The minimum denomination of the Notes is USD 200,000 and USD 1,000 thereafter. The settlement is due on June 3, 2021.

 

Milan, 26th May 2021

 

Contacts: 
Media Relations: e-mail: MediaRelations@unicredit.eu
Investor Relations: e-mail: InvestorRelations@unicredit.eu