Unicredit repay in advance AT1 bonds from 1,25 billion euros. The bank led by CEO Andrea Orcel announced that it has received the authorizations from the ECB and that it will exercise the early repayment option with a date of 3 June 2023. The At1 bond (Isin XS1619015719) was issued in May 2017 and was of the type " perpetual”, with a coupon of 6,25%. “The early repayment will take place at par together with the accrued and unpaid interest. The securities will be deducted from own funds starting today, i.e. with effect in the second quarter of 2023.
Unicredit: "New AT1s are not needed"
It is underlined that Unicredit “has high capital levels and an organic generation of capital as a leader in the sector, with a fully loaded CET1 MDA buffer, at the end of 2022, of 554 basis points, pro-forma both for the 2022 plan, already approved, of repurchase of treasury shares for 3,34 billion euros, and for the impact of the early redemption of the securities”. Therefore, Unicredit “has a limited need for TLAC/MREL funding for the remainder of the year and no need to issue AT1 instruments in the foreseeable future. Unicredit's funding is well diversified both in terms of funding sources and geographical areas”.
Unicredit leads the Ftse Mib
Unicredit's announcement on the early repayment of the 1 billion At1,25 bonds was welcomed in Piazza Affari. Unicredit shares are leading the Ftse Mib, up 2,4% to 18,4 euros and are driving the rebound of the Milan Stock Exchange index. After a negative start, the Ftse Mib at 10:57 moved positively to 27.179 points (+0,27%).
