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Unicaja Banco places successfully euros 300 million of subordinated Tier 2 debt, oversubscribed by more than three times

Unicaja Banco places successfully an issue of subordinated debt (Tier 2) that it has made today for an amount of €300 million, oversubscribed by more than three times.

06 NOV 2019

3 Min reading

The strong demand from investors has made it possible to reduce the cost of securities to 2.875%, as the investor base showed great interest, with a strong demand reached in three hours and exceeding €1,000 million. Orders were received from more than 110 investors, both international and domestic. The subordinated notes are issued at a 10-year term, with a call option in the fifth year.

 

This issue, in line with the measures included in the bank’s Capital Plan for the period 2019-2021, will allow Unicaja Banco to advance in the compliance with the MREL regulatory requirements. It also contributes to reinforce the bank’s solid and comfortable liquidity position, with the total capital ratio standing, after the issue, at 16.88% (proforma figure), versus the current level of 15.60%.

 

Unicaja Banco has placed successfully an issue of subordinated debt (Tier 2) that it has made today for an amount of €300 million, with a demand exceeded by more than 3.5 times in a short period of time.

 

The strong demand from investors has made it possible to reduce the cost of securities to 2.875%, as the investor base showed great interest, with a strong demand reached in three hours and exceeding €1,000 million. Orders were received from more than 110 investors, both international and domestic. The subordinated notes are issued at a 10-year term, with an early redemption option in the fifth year.

 

The said transaction, which falls within the bank’s Capital Plan for the period 2019-2021, will allow Unicaja Banco to advance in the compliance with the MREL regulatory requirements. The transaction also contributes to reinforce the bank’s solid and comfortable liquidity position, with the total capital ratio standing, after the issue, at 16.88% (proforma figure), versus the current level of 15.60%, as per the figures as at the end of 3Q 2019. This brings the buffer over total capital requirement set by the ECB within the SREP framework to €1,088 million.

 

The issue places Unicaja Banco in a comfortable to position to comply, by 1 January 2020, with the MREL requirements, set in 8.88% of its consolidated total liabilities and own funds, and in 20.59% in terms of risk-weighted assets on a consolidated basis, all of the previous calculated taking into account the information as of 31 December 2017.

 

UBS has collaborated in the transaction as global coordinator, and the banks HSBC, Mediobanca, Morgan Stanley and UBS, as managers for the placing. These securities are expected to be listed on the fixed income AIAF market.

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