UniCredit fixes call option to pref senior deal

By Tyler Davies
18 Jun 2019

UniCredit made the unusual decision of adding a one year call option to a preferred senior bond on Tuesday, nodding towards the bond’s potential value as total loss-absorbing capacity (TLAC). The Italian bank won strong support on a day when dovish central bank comments were fuelling a big rally in the value of risk assets.

UniCredit sold €1.25bn of six year preferred senior bonds, giving itself the option to call the debt after the first five years, in June 2024.

European banks have slowly started to move towards issuing senior bonds with call options a year ahead of maturity, as a way of ...

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