UniCredit successfully returns to the US fixed-income market with a multi-tranche USD 3.5 billion Senior Non-Preferred issuance - pb.pl
UniCredit S.p.A. has successfully issued USD 3.5 billion in Senior Non-Preferred Notes across three tranches, marking the bank's first US market issuance since 2021.
The transaction, priced at 100.00%, includes three fixed-to-fixed-rate tranches with maturities of 4NC3, 6NC5, and 11NC10. The 4NC3 tranche of USD 1.5 billion offers a coupon of 5.970% per annum for the initial three years, equivalent to a spread of 105 basis points over the three-year US Treasury rate.
The 6NC5 tranche of USD 1 billion provides a coupon of 6.201% per annum for the initial five years, with a spread of 125 basis points over the five-year US Treasury rate. The 11NC10 tranche of USD 1 billion offers a coupon of 6.585% per annum for the initial ten years, with a spread of 148 basis points over the ten-year US Treasury rate.
The book-building process attracted strong demand of more than USD 20 billion from more than 200 investors worldwide, with approx. 65% of the demand coming from North America. This allowed UniCredit to tighten the initial price guidance and achieve the following terms:
- 4NC3 fixed-to-fixed-rate Notes: USD 1.5 billion, with a coupon of 5.970% per annum for the initial three years, payable semi-annually, equivalent to a spread of 105 basis points over the three-year US Treasury rate.
- 6NC5 fixed-to-fixed-rate Notes: USD 1 billion, with a coupon of 6.201% per annum for the initial five years, payable semi-annually, equivalent to a spread of 125 basis points over the five-year US Treasury rate.
- 11NC10 fixed-to-fixed-rate Notes: USD 1 billion, with a coupon of 6.585% per annum for the initial ten years, payable semi-annually, equivalent to a spread of 148 basis points over the ten-year US Treasury rate.
The Notes have not been registered under the United States Securities Act of 1933, as amended, and may be offered and sold only to qualified institutional buyers or outside the United States in accordance with Regulation S. Citigroup, J.P. Morgan and UniCredit acted as Global Coordinators, while Barclays, BofA Securities, Goldman Sachs International, HSBC, Morgan Stanley, RBC Capital Markets and Wells Fargo Securities acted as Joint Bookrunners.
The transaction marks UniCredit's first issuance in the US market since 2021 and initiates the pre-funding of the Group's 2027 funding needs. The Notes will be issued under UniCredit's GMTN Programme and are expected to be rated Baa2 by Moody's, BBB by S&P and BBB+ by Fitch. Settlement is expected to take place on 19 November 2026.
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