A&O Shearman advises UniCredit on EUR3 billion bond issuances

A&O Shearman advised UniCredit S.p.A. on two significant debt capital markets transactions, with a total value of EUR3bn, an Additional Tier 1 bond issuance with a nominal value of EUR1bn, and a dual tranche Senior bond issuance totaling EUR2bn. The transactions confirm UniCredit’s strong position in the international capital markets and A&O Shearman’s ability to handle highly complex mandates in the banking sector.

In both transactions, the bonds are intended for institutional investors and issued in dematerialized form. The bonds were issued under UniCredit S.p.A.'s Euro Medium Term Notes program and were listed on the regulated market of the Luxembourg Stock Exchange.

• Regarding the two series, the characteristics are as follows:
  • Fixed-to-floater bond for a nominal value of EUR1,25bn, maturing in 4.5 years (July 15, 2030), callable after 3.5 years. The bond pays a fixed annual coupon of 2.875% until the optional redemption date (July 15, 2029). From that date, should the issuer not exercise the call option, the coupon will be redetermined on the basis of the 3-months Euribor, with an increase of 55 basis points.
  • Fixed-rate bonds for a nominal value of EUR750m, maturing in 10 years (January 15, 2036). The bond pays a fixed annual coupon of 3.80%.

• Regarding the Additional Tier 1 bond, the characteristics are as follows:
  • The securities are perpetual, with maturity tied to the issuer's statutory duration, which has the option to call them early, and pay a fixed annual coupon of 5.80% until the reset date (June 3, 2036). From that date, if the early redemption option is not exercised, the coupon will be reset at 5-year intervals based on the applicable Mid-Swap rate at that time, plus 301.3 basis points.

The A&O Shearman team advising on the two transactions was led by partner Cristiano Tommasi, supported by counsel Sarah Capella and senior associate Elisabetta Rapisarda, with assistance from trainee Lisa Avitabile. Counsel Elia Ferdinando Clarizia provided advice on tax matters.