Unicredit he placed his first senior preferred on Monday green bonds. The issue, intended for institutional investors, is worth everything one billion euros and has maturity of eight years, with a call option after seven.
Good the question, which exceeded the offer by more than three times reaching 3,25 billion. The orders came in from over 200 investors.
Thanks to the sustained level of requests, the initial indication of one spread of 120 basis points on the 7-year mid-swap was reduced by 30 basis points, reaching 90 basis points, for a fixed annual coupon of 0,8%, with an issue price of 99,953%.
The bond was mainly acquired by investment funds (57%), insurance companies and pension funds (29%), banks and private banks (9%) and public financial institutions (5%). Territorially, the demand came from France (30%), Germany/Austria (20%), UK (13%), Benelux (9%), Italy (7%), Iberian Peninsula (7%), Nordic countries (6%) and Switzerland (5%).
“This first green bond – he said Andrea Orcell, CEO of Unicredit – is a clear indication of how fundamental ESG issues are for our long-term offer, underlining the very essence of our way of doing sustainable business, for the benefit of all our stakeholders, but above all our customers and the communities in which we operate”.
The proceeds of the bond - explains the Bank in a note - will be used to finance renewable energy, low environmental impact transport, sustainable mobility, infrastructure and green building.
The issue is part of Unicredit's Emtn program of 60 billion ei rating expected are the following: Baa1 (Stable) from Moody's, BBB (Stable) from S&P and BBB- (Stable) from Fitch. The security will be listed on the Luxembourg Stock Exchange. As of 2020, Unicredit has produced "a 60% reduction in its greenhouse gas emissions compared to 2008 values, as part of the long-term commitment to an 80% reduction by 2030", concludes the note.
