Right now bond yields are still pretty good. If the ECB then cuts rates, as is expected, they will go down. Based on this perspective, Unicredit has today launched a new bond that reflects this trend and shows two sides: for the first two years, high yields, very high indeed, then decreasing in step with the official rates.
The bond offered by the Piazza Gae Aulenti institute has a minimum threshold of 10.000 euro and therefore intended for an advanced retail audience.
In the first 2 years it yields 9,4% per year. Then variable coupon indexed to Euribor
The new title, which has Isin code IT0005592818, lasts 13 years, with expires in April 2037. In the first two years the yield is 9,4%, paid annually. From the third year onwards the bond offers a variable gross coupon equal to the rate 3 month Euribor, with a minimum of zero and a maximum of 9,4%, always paid on an annual basis.
Offered at 100 on the Mot. Taxation at 26%
Until May 3, the price on offer on the MOT market and on Bond-X of the Italian Stock Exchange will be equal to the issue price, i.e. the 100% ofand the nominal value. We will then move on to the secondary market, where the security will be traded according to the normal logic of supply and demand. The yield of the Unicredit stock, like that of all corporate and financial bonds, is taxed at 26%, unlike that of government bonds (Italian and otherwise) on which a rate of 12,5 is applied.
The bond formula is certainly not new for the bank in Piazza Gae Aulenti, which already has last February it had entered the retail market with a bond that yielded 7,7% for the first three years.
Il last month Instead, Unicredit To attract retail investors has devised an issue with a final coupon. Even in that case the bond has a duration of 13 years and savers will collect the yield indicated at 4,60% gross all together at maturity.
