UNICREDIT (UCG): UniCredit successfully issues a 12 year subordinated Tier 2 bond with a 2.731% coupon for an amount of EUR 1.25 billion - raport 1

Raport bieżący nr 1/2020

Podstawa Prawna: Inne uregulowania
PRESS RELEASE

UniCredit successfully issues a 12 year subordinated Tier 2 bond with a 2.731% coupon for an amount of EUR 1.25 billion

A very strong and granular order-book of more than EUR 3 billion allowed to tighten the spread by 30 bps from initial price talks.

Today, UniCredit (issuer rating Baa1/BBB/BBB) launched a Tier 2 subordinated benchmark with 12 year maturity, callable after 7 years. The amount issued is equal to EUR 1.25 billion and represents the first Tier 2 issuance in 2020, reaffirming UniCredit’s solid fixed income investors base and its market access in different formats.

The bond pays a fixed coupon of 2.731% during the first 7 years, and has an issue price of 100%, equivalent to a spread of 280 bps over the 7 year swap rate. If the issuer does not call the bonds after 7 years, the coupon for the subsequent period until maturity will be reset on the base of the 5 year swap rate at the end of the seventh year, increased by the initial spread.

Given the strong market feedback and the sizeable order book, the guidance initially set in the 310 bps area over mid-swap was firstly reviewed to the 290 bps area and set finally at 280 bps, with a final size of EUR 1.25 billion.

The transaction has encountered a very strong demand from more than 250 institutional investors and an order-book of more than 3 billion, mainly funds with 78% of the final allocation originated by UK (39%), France (19%), Germany/Austria (12%) and Italy (10%).

Barclays, BBVA, Credit Agricole CIB, Mediobanca, Morgan Stanley and UniCredit Bank AG have managed the placement acting as joint bookrunners.

The bonds are documented under the issuer's Euro Medium Term Notes Program. In light of the subordinated status, the expected ratings are as follows: Baa3 (Moody's) / BB+ (S&P). The amount issued is part of the 2020 Funding Plan presented at the Capital Market Day last December 3rd and will be computed in UniCredit's Tier 2 regulatory capital, contributing to the Total Capital Ratio. Listing will be on the Luxembourg Stock Exchange.

Milan, 8 January 2020

Contacts:

Media Relations Tel. +39 02 88623569; e-mail: MediaRelations@unicredit.eu

Investor Relations Tel. + 39 02 88621028; e-mail: InvestorRelations@unicredit.eu

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