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Allen & Overy advises UniCredit on senior green bond fix-to-floater in dematerialised form

Allen and Overy assisted UniCredit S.p.A in the placement of a fix-to-floater senior green bond for EUR750 million, maturing in six years and three months (14 February 2030) with an early call after five years and three months (14 February 2029).

The bond, issued under UniCredit’s Euro Medium Term Programme, is dematerialised and has been centralised with Monte Titoli (now Euronext Securities Milan) and listed on the Luxembourg Stock Exchange, making it the first UniCredit S.p.A. dematerialised bond issue to be targeted at institutional investors.

The bond pays a fixed coupon of 4.60% annually, until 14 February 2029. From that date, if an early call has not occurred, the bond will pay quarterly interest equal to the three-month Euribor rate increased by a 1.50% margin.

The bond issue occurred within the UniCredit’s Sustainability Bond Framework (the “Framework”), which was published in 2021, in line with the Green and Social Bond Principles as well as the International Capital Market Association’s Sustainability Bond Guidelines. Annual reporting will ensure transparent allocation of proceeds and impact achieved tracking. The proceeds will be used to fund specific renewable energy, clean transportation and green building projects as set out in the Framework. The initiative aims to support the United Nations Sustainable Development Goals (UN SDGs) number 7 (Affordable and Clean Energy), number 9 (Build resilient infrastructure, promote sustainable industrialisation and foster innovation), and number 11 (Make cities inclusive, safe, resilient and sustainable).

Allen & Overy’s team was led by partners Cristiano Tommasi and Craig Byrne from the International Capital Markets Department, together with associate Elisabetta Rapisarda and tax counsel Elia Ferdinando Clarizia.