Italian lender UniCredit SpA issued €1.25 billion and €750 million in two tranches of senior nonpreferred notes, together representing the company's largest ever euro-denominated institutional unsecured issuance.
The €1.25 billion bonds carry a fixed coupon of 1.20% paid annually, with an issue price of 99.899%, equivalent to a spread of 135 basis points over the five-year swap rate. They carry a six-year maturity.
The issuer will be able to call the bonds in the fifth year, but should it not do so, the coupons for the subsequent periods until maturity will reset to a floating rate equal to three-month Euro interbank offered rate plus the initial spread of 135 basis points.
Meanwhile, the €750 million bonds carry a fixed coupon of 1.80% paid annually, with an issue price of 99.62%, equivalent to a spread of 165 basis points over the 10-year swap rate. They carry a 10-year maturity.
As a result of strong market feedback and sizeable book order, the guidance for the €1.25 billion bonds was revised to 135 basis points from the 155 basis points area, while the guidance for the €750 million bonds was revised to 165 basis points from the 185 basis points area over mid-swaps.
BofA Securities, Commerzbank, HSBC, ING, JP Morgan, Société Générale and UniCredit Bank AG managed the placement as joint bookrunners.