26.2 million existing ordinaryshares in Bank PekaoSA, or about 10.0% of the Polish unit's issued share capital, toinstitutional investors at 126 Polish zlotys per ordinary share in anaccelerated placement.

Theprice represents a discount of approximately 6% to the last pre-announcementclosing price of Bank Pekao and is estimated to translate to an increase ofabout 12 basis points in the UniCredit group's common equity Tier 1 ratio.

UniCreditsaid July 12 that gross proceeds raised from the placement totaledapproximately 3.3 billion zlotys.

Followingcompletion of the placement, UniCredit owns a controlling stake of 40.1% inBank Pekao.

Thetransaction follows the placing of 10% of FinecoBank SpA's ordinary share capital, earlier the same day.

MorganStanley & Co. International Plc, Citigroup, UBS Ltd. and UniCreditCorporate & Investment Banking served as joint book runners for theplacement.

As of July 12, US$1was equivalent to 3.99 Polish zlotys.