Turkey shoot

28 November 2018 By Aimee Donnellan Follow @aimeedonnellan

The Italian lender is raising $3 billion from the bond giant at nearly 8 pct, miles more than it would have cost earlier this year. UniCredit’s plight is analogous to a last-gasp Christmas turkey shopper. Having delayed until the last moment, it now has to pay through the nose.

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U.S. fund Pacific Investment Management Co (Pimco) has bought the entire issue of a $3 billion, five-year bond issued by Italy’s only globally systemically important bank UniCredit, a source familiar with the matter confirmed to Reuters on Nov. 28.

UniCredit and Pimco declined to comment.

UniCredit said on Nov. 27 the cost of the transaction was equivalent to a spread of 420bps over the euro five-year swap rate.

In January, UniCredit sold Italy’s first senior non-preferred bond placing - a 1.5 billion euro five-year bond at a premium of 70 basis points over the swap rate.

Shares in UniCredit were up 2.87 percent at 11.76 euros by 1509 GMT on Nov. 28.

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