Itaú Unibanco Holding SA on Dec. 5 priced a $1.25 billion offering of perpetual Tier 1 subordinated notes at 100%.
The notes, to be issued Dec. 12, will carry a fixed rate of 6.125% applicable for five years. After that, the coupon will be reset every five years based on the prevailing rate for U.S. Treasury bonds.
The Brazilian company said it will seek central bank approval to include the notes in its regulatory capital as additional Tier 1 capital, which would add 60 basis points to the lender's Tier 1 capital ratio.
Subject to regulatory approvals, Itaú may repurchase the notes after five years or on any subsequent interest payment date.
