Corporate Bond, Enel and Unicredit place two products for 2.5 billion
The sequence of corporate bond placements has continued with intensity since the beginning of 2024. Yesterday, Unicredit successfully carried out the placement of a senior bond unpreferred of 1 billion euros with a maturity of 7 years and the possibility of early repayment (call) after 6 years, aimed at institutional investors. The request was robust, exceeding 2.5 billion from around 200 investors, mainly funds (73%), mainly distributed in Italy (25%), United Kingdom (17%), Germany/Austria (15%), France (13%) and Spain/Portugal (12%). These data are reported by Mf. Thanks to this strong demand, the initial level of 210 basis points above the rate 6-year mid-swap has been revised to 180.
The annual coupon is 4.3%, higher than the yield of the 10-year BTP at 3.8%, with an issue/re-offer price of 99.751%. The bond (with expected ratings of Baa3, BBB- and BBB- by Moody's, SeP and Fitch) is part of the financing plan for 2024, as indicated by Unicredit, and “envisages the possibility of a single call option from part of the issuer in the sixth year, in order to maximize efficiency from a regulatory point of view. After 6 years, if the bond is not called, the coupons for the subsequent periods until maturity will be set on the basis of the Euribor at 3 months plus the initial spread of 180 basis points and paid quarterly”. Enel is also active on the primary market, with the issue of a sustainable bond in two tranches to institutional investors for a total amount of 1.75 billion.
Requests exceeded 5.8 billion, with notable participation from socially responsible investors. The proceeds will be used to refinance the group's ordinary needs linked to maturing debt, Enel specified. The first tranche of 750 million offers a fixed rate of 3.375%, with a price set at 99.727% and a yield to maturity (July 23, 2028) of 3.445%. The second 1 billion tranche offers a fixed rate of 3.875%, with a price set at 98.792% and a yield to maturity (January 23, 2035) of 4.013%. The bond provides for the use of two key sustainability performance indicators for each tranche, confirming Enel's commitment to the energy transition. CFO Stefano De Angelis stated: “In order to satisfy the significant interest from investors, the amount of the placement has been increased compared to the initial amount. We will continue to work tirelessly to achieve the financial and emissions reduction targets ofgreenhouse gases”.
Corporate bond placements in Italy and Europe they have already reached 60 billion in new issues since the beginning of the year, with significant demand. “The average yield is around 4% for senior issues, while it rises to 6% for subordinated ones, considering both corporate and financial issuers”, declared Arrigo Pelliccia, fund manager of AcomeA sgr, to MF-Milano Finanza. “The primary was supported by the massive yield compression seen in the last months of the year, which loosened financing conditions compared to the first part of 2023. We continue to prefer financials to corporates due to the solidity of the fundamentals, the macro context and the technical market factors which see them favored over corporates in the future”.
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