Unicredit has issued two bonds: the first is at a fixed rate and has an amount of 2,5 billion dollars, the second is a variable rate and the amount is equal to 500 million. The total amount thus reaches 3 billion dollars. Both bonds will mature on January 14, 2022.
“This transaction – says the bank led by Jean Pierre Mustier – is the third on the Senior Non-Preferred bond market placed by Unicredit, after the first issue in January 2018 of a 5-year bond for an amount of 1,5 billion euros and the 5-year one for an amount equal to 3 billion dollars in November 2018”.
The bonds will be computable for TLAC purposes and the institute in Piazza Gae Aulenti expects a positive impact of approx. 72 basis points. In fact, the operation belongs to the Funding plan for TLAC (Total-Loss Absorbing Capacity) purposes which establishes the objective of issuing instruments for an amount between 3 and 5 billion within the first quarter of the current year.
The communicated spread, initially set at 430 basis points on the 3-year US Treasury, improved significantly by 30 basis points and was equal to T + 400 basis points for the fixed rate tranche and 390 basis points + US Libor for the floating rate tranche, approximately equivalent to the 3-month Euribor + 365 basis points. "This is - Unicredit continues - the most marked reduction in terms of spread recorded on the USD market so far in 2019, both among US and European investors".
As for the details, the 3-year fixed rate note will have a 6,572% coupon, paid semi-annually, with an issue/re-offer price of 100%. The variable rate one has a coupon at 3-month US Libor + 390 basis points, paid quarterly, with an issue/re-offer price of 100%.
“The Securities are issued under the registration-exempt regime of the United States Securities Act of 1933, as subsequently amended (the “Securities Act”), and may be sold only (i) in the United States to qualified institutional investors, as defined under Rule 144A of the Securities Act, exempt from registration under the Securities Act and (ii) outside the United States under Regulation S of the Securities Act or other applicable registration exemptions ”, reads the note.
