Skip to:
  1. Home
  2. Press & Media
  3. Press Releases
  4. 2013
  5. Unicredit issues a long 5 year Covered Bond (OBG) benchmark for Euro 1 Billion
Share this event on:
  • LinkedIn

Recomend this page

Thank you, we sent your recommendation to the desired recipient.

Sorry, this functionality is not available right now.
Please try with this link. Thank you.


Recipient (e-mail address):

Unicredit issues a long 5 year Covered Bond (OBG) benchmark for Euro 1 Billion

UniCredit has launched a new long 5 year OBG benchmark for a total of Euro 1 billion gathering strong interest from investors, with orders in excess of Euro 1.6 billion. The participation of more than 130 investors has been well diversified in terms of geography as well as investor type.


The bond - managed by UniCredit Corporate & Investment Banking together with BayernLB, Commerzbank, Credit Agricole CIB, ING and SG CIB - was distributed to different institutional investors' categories such as funds (49%), banks (35%) and insurance companies (9%). The demand was driven by a wide geographical diversification, with Germany/Austria being the major contributor (40%) together with France (19%), Italy (14%), Iberia (10%), Benelux (5%) and Switzerland (5%).


The issue is expected to be rated AA+/A2/A by S&P, Moody's and Fitch and will pay a coupon of 1.875% with an issue price set at 99.544%, resulting in a yield to maturity equal to 85 basis points over the swap rate. As result of the strong investor feedback the final spread has been fixed inside the initial spread guidance set in area 88 bps, approximately 120 basis points below the equivalent maturity BTP at time of launch, representing the highest spread discount versus the respective government curve ever achieved.


The issue launched today is part of the 35 billion Euro Programme announced in 2008 and based on a portfolio entirely composed of residential mortgages. For the benefit of the OBG holders (including this issue, the OBG I Programme has 13.7 billion Euro outstanding), the bank has already segregated around 21.2 billion Euro of residential mortgages originated by UniCredit S.p.A..


The global portfolio as of the end of March 2013 comprises approximately 204,000 mortgages and has a very high granularity (with an average outstanding amount of ca. Euro 99,000 ). It has an average loan-to-value of approx 55.3%, a geographical concentration in northern and central Italy of 58% and 21% respectively. The Programme has been arranged by UniCredit Corporate & Investment Banking.