UniCredit (rated Baa2/BBB/BBB+) has today issued a new senior benchmark with a maturity of 3 years and a size of Euro 1 billion. Following a book building process the coupon has been set at 2.25% with an issue/re-offer price of 99.997%, resulting in a yield to maturity equal to 158 basis points over the 3 year swap rate, down from the initial pricing guidance at 165/170 bps.
UniCredit Bank AG, BNP Paribas, Credit Suisse and DZ Bank have managed the placement acting as joint bookrunners.
The transaction has experienced a strong interest involving almost 200 institutional investors with total orders of more than Euro 2 billion. The bond was distributed to different institutional investors' categories such as funds (75%), banks (19%) and insurance companies (4%). The demand was driven by a wide geographical diversification, with France (22%) and UK/Ireland (22%) being the major contributors, together with Germany/Austria (15%), Italy (13%) and Nordics (8%).
The bonds form part of the UniCredit's outstanding benchmark curve and are documented under the Euro Medium Term Notes Program. Listing will be on the Luxembourg Stock Exchange.