UniCredit (issuer rating Baa1/BBB+/BBB+) has successfully issued a Tier 2 subordinated bond with a 12-year maturity, callable after 7 years, targeted at institutional investors thus reaffirming its solid fixed income investor base and market access capacity across different formats. The amount issued is equal to EUR 1.0 billion.
This is the first Tier 2 issuance in 2025paying a fixed coupon of 4.175% until June 2032 and with an issue price of 99.928%, equivalent to a spread of 180 bps over the reference mid swap rate. If the issuer does not call the bonds after 7 years, the coupon for the subsequent period until maturity will be reset based to the then applicable 5-year swap rate, plus the initial spread.
Given the strong market feedback and the sizeable order book, the guidance which was initially set at 215 bps area over mid-swap, was strengthened and set at 180 bps.
The transaction had very strong demand from approximately 200 institutional investors, with an orderbook of over EUR 3.4 billion. The final allocation has been mainly in favor of funds (67%), with the following geographical distribution: UK (33%), France (33%) and Germany/Austria/Swiss (9%).
UniCredit Bank GmbH acted as sole Global Coordinator and as Joint Bookrunner together with Barclays, HSBC, ING, Mediobanca, Santander, SocGen and Toronto Dominion.
The bond, documented under the issuer's Euro Medium Term Notes Program, completes the subordinated issuance plan for 2025 and will be part of UniCredit's Tier 2 regulatory capital, contributing to the Total Capital Ratio.
In light of the subordinated status, the expected ratings are as follows: Ba1 (Moody's); BBB- (S&P); BBB- (Fitch).
Listing will be on the Luxembourg Stock Exchange.
Milan, 17 June 2025
Contacts:
Media Relations e-mail: MediaRelations@unicredit.eu
Investor Relations e-mail: InvestorRelations@unicredit.eu