Italy-based UniCredit SpA issued senior nonpreferred notes worth $3 billion, due Jan. 14, 2022.
The notes were issued in two tranches: $2.5 billion fixed-rate notes carrying a coupon of 6.572%, paid semiannually, at an issue price of 100%; and $500 million floating-rate notes carrying a coupon of three-month U.S. London interbank offered rate plus 390 basis points, paid quarterly, at an issue price of 100%.
The bookbuilding process generated demand of about $8 billion. Orders were received from more than 200 accounts worldwide — 65% from the U.S., 18% from the U.K., 3% from the Middle East and 14% from the rest of Europe.
The notes are eligible for total loss-absorbing capacity requirement, and will improve the subordination ratio by approximately 72 basis points, according to UniCredit. The transactions are a part of the Italian lender's TLAC funding plan announced during its third-quarter 2018 results, under which it plans issuances of between €3 billion to €5 billion by the end of the first quarter of 2019.
UniCredit Bank AG, Barclays, Citigroup, Goldman Sachs, JPMorgan and UBS managed the placement and acted as joint book runners on the deals.