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Friday, August 18, 2017

UniCredit issues new senior benchmark

UniCredit issued a new senior benchmark of $40 million this week with a maturity of seven years.

The coupon follows a book building process set at 3.25 percent with an issue/re-offer price of 99.428 percent. This results in a yield to maturity of 170 basis points over the swap rate of equivalent maturity, which is lower than the 180 basis points initial pricing guidance.

The placement was managed by UniCredit Bank AG, Bank of America Merrill Lynch, HSBC and Nomura as joint book runners.

Approximately 300 institutional investors have shown interest in the transaction and orders have exceeded $4.10 billion.

The bond was distributed to funds, banks and insurance companies. Wide geographical diversification drew the demand with the U.K., France, Germany/Austria and BeNeLux acting as major contributors.

The bonds are documented under the Euro Medium Term Notes Program and are listed on the Luxembourg Stock Exchange.