In the last hours, Unicredit and Banco Bpm completed the placement of two bonds. In particular, the Bank of Piazza Gae Aulenti has placed on the market a senior preferred bond in two tranches, each of one billion euro, with a maturity of 5 and 10 years. The question has exceeded a total of three billion euros. The 5-year title will guarantee a return by 77 basis points above the midswap rate, while the 105-year will reach XNUMX.
The five-year tranche was issued at a price of 99,891% and will pay a fixed coupon of 0,325%. The bond was mainly purchased by funds (61%), banks (36%) and insurance companies (2%); from a geographical point of view, requests came mainly from Germany/Austria (27%), Italy (23%), France (19%), UK (10%) and Spain/Portugal (8%).
The 10-year bond, issued at 99,885%, will pay an annual coupon of 0,85%. Also in this case the main investors were funds (62%), banks (33%) and insurance companies (5%) and the geographical breakdown sees Germany and Austria (27%) in the lead, followed by France (23%), Italy ( 18%), UK (15%) and Spain/Portugal (7%).
I rating expected for the bond issue are Baa1 from Moody's, BBB from S & P, BBB- from Fitch.
As for Bpm bank, he placed a perpetual Additional Tier 1 bond for an amount equal to 400 million euro. The issue was intended for institutional investors. The institute explains in a note that the operation “allows for achieve the group's Tier 1 capital target".
Bonds, issued at par, pay off a fixed six-monthly non-cumulative coupon of 6,50%, and can be called up by the issuer for the first time on 19 January 2026, then every 6 months thereafter. In the event of non-call, the new fixed-rate coupon will be determined by adding the original spread to the 5-year mid swap rate in euro (to be recorded at the time of the recalculation date) and will remain fixed for the next 5 years. The Bank specifies that the payment of the coupon is discretionary and subject to certain limitations.
Furthermore, the security includes a mechanism for the temporary reduction of the nominal value should the Group's Cet1 coefficient fall below 5,125%.
Mainly asset managers (70%), hedge funds (16%) and banks (10%) invested in Banco Bpm's new bond, while the geographical distribution sees the prevalence of foreign investors, especially from the United Kingdom (44%) .
