Great demand for the seven-year covered bond launched this morning by Unicredit, which out of an issued amount of one billion euro received applications for 7 billion. The success of the issue was determined by the renewed confidence due to the further decrease in the spread between the BTP and the Bund, and the good yields offered, as well as the latest news on Basel 3.
The yield had initially been indicated between 160 and 165 basis points above the midswap, but at the end of the pricing it was set at 150 basis points, 85 basis points below the yield of the reference seven-year BTP. The banks in charge of managing the operation are IMI, Lloyds Bank, Natixis, Rbs and Unicredit.
In the early afternoon, the Unicredit stock earns 2,98% at €4,006 per share.
