Ubi Banca and Unicredit score a series of important bond placements.
Ubi successfully closed the inaugural Additional Tier 1 issue for a total of 400 million euro, intended for institutional investors. The issue will help optimize the bank's capital structure. As stated in a note, thanks to the volume of orders received from approximately 450 institutional investors (for over 6 billion euro), the initial coupon guidance, announced in the 6,5% area, was revised downwards by 0,625% and the final coupon was set at 5,875% for the first 5 and a half years. The coupon is payable on a six-monthly basis in arrears, on 20 June and 20 December of each year, starting on 20 June 2020 (first coupon short). The re-offer price is in 100.
The securities are perpetual and may be recalled by the issuer from 20/01/2025 until 20/06/2025 and subsequently on each coupon payment date. If the early repayment option is not exercised by 20/06/2025, a new fixed rate coupon will be redefined which will be valid for the following 5 years and will subsequently be redefined at 5-year intervals, adding the original spread equal to 606,6 .XNUMX bps at the mid swap rate in euro of the same maturity in force at the time, calculated on an annual basis and recalculated on a six-monthly basis.
The expected rating of the security is B2/B+ (Moody's/S&P). The stock will be listed on the Irish Stock Exchange (Global Exchange Market)
As for Unicredit, placed two bonds on the market for a total of 2 billion against a demand that exceeded 4 billion euro. Requests came from over 350 institutional investors.
As regards the first issue, Unicredit placed 6-year non-preferred senior bonds (maturity January 2026), non-repayable in the first 5 for 1,25 billion euro. The bonds will pay a fixed annual coupon of 1,20%.
As for the 10-year issue, Unicredit placed bonds for 750 million at a fixed rate of 1,80%.
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