Unicredit has launched a Tier 2 bond worth one billion euros with a 15-year maturity. The issue provides for the possibility of exercising a call in the tenth year at par. The Bank communicated this in a note, specifying that the coupons will be paid every six months at a fixed rate of 5,861% per year for the first 10 years.
Subsequently, if not called by the issuer, the coupon will be recalculated on the basis of the 5-year swap rate in dollars increased by a margin equal to 370,3 basis points.
The market responded positively bringing the order book above 3 billion dollars with orders from around 200 investors from all over the world. This dynamic led the price guidance to a final spread of 365 basis points over the XNUMX-year Treasury.
The bond issue aims to strengthen Unicredit's total capital ratio and Tier 2 Capital.
