The issuance forms part of Milan-headquartered UniCredit’s 2026 funding plan and will count towards Tier 2 capital, with coupon reset terms applying if the bond is not called in 2031.

Unicredit S.p.A. (Unicredit) has issued a €1.25 billion (US$1.45 billion) Tier 2 subordinated bond on 12 May, according to a company release. The bond pays a fixed coupon of 4.231% until May 2031  The transaction, targeted at institutional investors, carries a 10-year maturity and incorporates a call option after five years. This means the issuer retains the right to redeem the bond in 2031, before its final maturity. As stated by the Italian multinational commercial bank, the bon