Ubi Banca has launched a 'dual tranche' issue of 6,5 and 12-year covered bonds, both at a fixed rate, for a total of 1 billion under the group's 15 billion covered bond programme. Orders for the issue reached 1,3 billion.
The coupon is equal to 1,25%, equivalent to a spread of 30 basis points above the 12-year mid-swap rate and a negative spread of approximately 93 basis points on the corresponding BTP, and is payable in arrears on 15/1 every year.
The final price (reoffer) was set at 98.932%. The expected rating of the Covered Bank Bonds (which have 100% high quality Italian residential mortgages as their underlying) is Aa2 (stable) by Moody's and AA low by DBRS.
