UNICREDIT SUPPORTS EU WITH RECORD SOCIAL BOND ISSUE

The European Union aims to finance 100 per cent of its SURE (Support to Mitigate Unemployment Risk in an Emergency) programme through the issuance of social bonds. It plans to issue up to €100 billion by 2021 to preserve employment in the region.

UniCredit was the joint bookrunner in the debut transaction of the SURE programme.

On 20 October, the European Commission on behalf of the European Union, issued a €17 billion dual tranche social bond split in two distinct tenors – €10 billion due in October 2030 and €7 billion due in 2040.

This landmark transaction is the largest ever social bond, with approximately 63 per cent of the tranches allocated to ESG investors. With a total of €233 billion in collected orders, this issue is the largest orderbook from a supranational institution to date with more than 1,000 investors participating in both tranches. It also marks the largest bond transaction in terms of total size ever issued.

UniCredit was one of just five banks in the consortium group.

The proceeds from the EU SURE social bonds will be used exclusively to finance programmes with a positive social impact. This prominent transaction is perfect proof of UniCredit’s commitment and support of the European economy and society during the coronavirus pandemic.

Richard Burton, CEO of the Corporate and Investment Banking division commented: “Having been a pioneer and a leader in innovations in the Green space, UniCredit is committed to supporting the European Union in mitigating the impact of the Covid-19 crisis. This highly prominent and successful transaction for the EU demonstrates how we are able to deliver solutions as a European commercial bank fully plugged in CIB.”