MILAN: UniCredit, Italy's biggest bank by assets, has raised 2.5 billion euros ($2.76 billion) from retail investors selling a subordinated bond that it will be able to include in its supplementary capital.
UniCredit and other Italian banks recently stopped counting as part of their Tier 2 capital subordinated bonds where gradual repayment began less than five years after issue. UniCredit CEO Federico Ghizzoni said last month the impact on his bank's capital was 3.5 billion euros.
The lender has swiftly moved to tap small investors with a new issue. "We have placed 2.5 billion euros of Tier 2 bonds through the retail network," UniCredit's head of strategic funding Waleed El Amir told Reuters on Thursday.
The exclusion of some subordinated bonds from the capital base had seen UniCredit's total capital ratio fall to 13.6 percent of assets at the end of December from 14.9 percent at the end of September.
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