Unicredit placed a 5-year Senior Non-Preferred bond on Tuesday for an amount of 3 billion euros. The bond is part of the institution's US Global MTN Program and is intended for “a prime institutional investor”.
This is Unicredit's second Senior Non-Preferred bond after the inaugural 5-year one for an amount equal to 1,5 billion euro placed in January. This transaction is also the first under the GMTN program.
The cost of funding was equal to 420bps on the 5-year swap rate. The bond, one of the most significant in terms of amount in 2018, will be computable for TLAC purposes and, in this regard, a positive impact of approximately 73bps is expected, in relation to risk-weighted assets in the third quarter of 2018. The placement was managed by Citibank, Morgan Stanley and UniCredit Bank as Dealers.
The stock has the following expected ratings: Baa3 (Moody's) / BBB- (S&P) / BBB (Fitch). The minimum denomination of the bond is $350.000 in multiples of $1.000.
