UniCredit Additional Tier 1 bond

The bond is perpetual, with a maturity linked to the issuer’s corporate duration and subject to an issuer call option. The securities pay a fixed annual coupon of 6.25% until the reset date (December 3, 2031). From that date, should the issuer decide not to exercise its call option, the coupon will be reset every five years based on the applicable Mid-Swap rate at that time, plus 284.1 basis points. 

The securities were issued under UniCredit S.p.A.’s Euro Medium Term Notes (EMTN) Programme and have been admitted to trading on the regulated market of the Luxembourg Stock Exchange. 

The A&O Shearman team was led by Cristiano Tommasi, supported by counsel Sarah Capella and senior associate Elisabetta Rapisarda, with assistance from associate Antonio Iuliano. Counsel Elia Ferdinando Clarizia advised on the tax aspects of the transaction. 

Cristiano Tommasi, partner, commented: “The market success of this operation confirms the strategic role of Additional Tier 1 instruments in banks’ regulatory capital management. Continued investor interest in this asset class demonstrates the maturity and resilience of a market segment that remains fundamental to the European banking sector.”