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UniCredit reopens the 5.5 year Covered Bond (OBG) benchmark for Euro 250 million

UniCredit has today reopened the 5,5 year OBG benchmark for Euro 250 million, bringing the total size of the issue to Euro 1 billion.

 

The deal has encountered a very strong interest from investors, bringing the final orderbook well above Euro 1 billion and was managed by UniCredit Corporate & Investment Banking together with Credit Agricole, Natixis, Morgan Stanley and Societe Generale

 

The issue will pay a coupon equal to 4% and is expected to be rated A/A2/AA+ by Fitch, Moody's and S&P. The new issue price is 105.043% equivalent to 190 basis points over the swap rate with the same maturity. Following the strong investor feedback the price guidance has been lowered versus the initial spread indication of approx 200 bps, resulting in 100 basis points below the first tranche issued on 14th August 2012 and approx 79 bps below the BTP with an equivalent maturity.

 

Today's reopening is part of the Euro 35 billion Programme announced in 2008 and based on a portfolio entirely composed by residential mortgages. For the benefit of the OBG holders (up to date Euro 11.7 billion issued including the present issue), the bank has already segregated around Euro 20.5 billion of residential mortgages originated by UniCredit S.p.A..

 

The global portfolio comprises approximately 200,000 mortgages and has a very high granularity (with an average outstanding amount lower than ca. Euro 101.000). It has an average loan-to-value of approx 52%, a geographical concentration in northern and central Italy of 58% and 21% respectively. The Programme has been arranged by UniCredit Corporate & Investment Banking. 

 

 

 

Milan, 17th October 2012