A&O Shearman advises UniCredit on new dual tranche bond

The two series have the following characteristics:

• Fixed-to-floating bond with a nominal value of EUR1 billion, maturing in 4.5 years, callable after 3.5 years. The bond pays an annual fixed coupon of 3.300% until the optional redemption date (July 16, 2028); from that date, if the bond is not called, the coupon will be paid quarterly and determined based on the 3-month Euribor with an initial spread increment of 98 basis points.
• Fixed-to-floating bond with a nominal value of EUR1 billion, maturing in 8 years, callable after 7 years. The bond pays an annual fixed coupon of 3.800% until the optional redemption date (January 16, 2032); from that date, if the bond is not called, the coupon will be paid quarterly and determined based on the 3-month Euribor with an initial spread increment of 140 basis points.

The bonds are issued under UniCredit’s Euro Medium Term Notes programme and were admitted to listing on the regulated market of the Luxembourg Stock Exchange.

The A&O Shearman team advising UniCredit was led by partners Cristiano Tommasi and Craig Byrne, supported by senior associates Sarah Capella, Elisabetta Rapisarda, and associate Paolo Martellone. Counsel Elia Ferdinando Clarizia assisted on tax-related aspects.