UniCredit To Complete Cash Call In Time For Bond Payouts

One America News Network | 8/18/2014 | Staff
rach-rach (Posted by) Level 3
Click For Photo: http://d2pggiv3o55wnc.cloudfront.net/oann/wp-content/uploads/2017/01/2017-01-12T101705Z_1_LYNXMPED0B0M4_RTROPTP_0_UNICREDIT-OUTLOOK_1.jpg

MILAN (Reuters) – The chief executive of Italy’s biggest bank UniCredit vowed on Thursday to complete a 13 billion euro ($14 billion) share issue by March 10, in time to make payouts due on some high-risk bonds that came under pressure on the market.

UniCredit’s shareholders meet on Thursday to approve the country’s biggest cash call to help the lender clean up its balance sheet and restructure under Jean Pierre Mustier.

New - CEO - Mustier - Plan - Month

New CEO Mustier detailed a plan last month to offload 17.7 billion euros in bad loans and cut 14,000 jobs. The bank said then that it would book 12.2 billion euros in one-off charges in the last quarter, with loan-loss provisions accounting for two thirds of the total.

In a statement on Thursday, issued at the behest of market regulator Consob, UniCredit said that fourth-quarter charges could make it difficult for the bank to pay coupons on so-called Additional Tier 1 (AT1) bonds due in March if it does not carry out the share issue.

Comments - UniCredit - AT1 - Issues - GMT

The comments weighed on UniCredit’s outstanding AT1 issues. By 0954 GMT (4:54 a.m. ET) the 8 percent bond on which the coupon payment is due yielded 9.5 percent, slightly higher on the day but below a session high of 9.7 percent. A 6.75 percent AT1 bond yielded 8.6 percent, up from 8.3 percent at the close on Wednesday.

AT1 instruments convert into shares if a bank’s core capital falls below a...
(Excerpt) Read more at: One America News Network
Wake Up To Breaking News!
Sign In or Register to comment.

Welcome to Long Room!

Give Us 5 Minutes, We'll Give You The World!

LongRoom Culture
Cat Joins In, Putting His Paw on Top of the Stack of Hands! All-For-One and One-For-All!  This cat really looks like it knows...
Lake Berryessa, California Has Water Levels 3.5' above the Glory Hole Spillway The drought is over in California and the latest...
This Rubber Band Machine Gun Is Awesome! This rubber band maching gun isn't lethal, but it is impressive!  The only problem...
Dog Catches Fish By Using Breadcrumbs as Bait! This clever dog stands very still in the water with his head near some floating...
Slinky Used to Squirrel-proof Bird feeder! A grandmother decided to use a slinky to deter squirrels from her bird feeder!...
Skydiver Makes Extremely Dangerous Sliding Maneuver Across Water Before Coming to a Stop on Land! The name of this maneuver is...
A Calm Nature Moment - Wombat Just Calmly Grazing On Grass! Usually nature videos are filled with mealtime drama, so it is nice...
Turtle Turns Slowly, Then Makes a Super Fast Getaway! Most people think that all turtles are slow perhaps because of the...
Man On Beach Makes Gigantic Bubbles! This incredible bubble almost looks like an alien creature coming to devour people on the...
Man on Very Strange Moving Contraption! This unusual vehicle that looks something like a cross between a tricycle and a spider...
Four Girls Sweep A Rat Down The Stairs And Out An Open Door! This is a wonderfully coordinated effort, especially the sweep...
First Attempt at the World Record for Longest Blindfolded Basket! Guiness Record Set for 71 Foot Blind Folded Basketball!...
Cute Cat Frantically Tries To Stop Washing Machine! This cat gives it a good try at trying to get this washing machine to stop...
So Many Cats You Just Won't Believe It, Stampede Out of Pet Carrier! After the first cat comes out and looks around the rest of...
Behind the Scenes Filming of the Tsunami in the Movie "The Impossible"! Someone who worked on the underwater filming of "The...
British Cyclists Hilariously Try To Free Bike Caught On An Electric Fence! Three friends on an outing have a shocking...
A Backyard Roller Coaster Builder Designed This Coaster For His Grandkids! Paul Gregg has got to be the greatest grandfather...
Morphing Timeline of Portraits of Queen Elizabeth from Banknotes! This is an amazing morphing image of the Queen's portraits...
Incredible Footage of Fire Hose of Lava Spewing from Kīlauea Volcano's Ocean Entry! The active Kīlauea Volcano has been...
Transformer Table! Round Table Expands From Small Round Table To Large Round Table With Built In Leaves!
Man Fights With Praying Mantis! This fight between a praying mantis and a man hardly looks fair, but the praying mantis is game...
Amazing Woman Dives From Dizzyingly High Dive Platform on Cruise Ship! This is not for the faint of heart to even watch, it is...
Dachshund Is Reunited With His Favorite Squeaky Toy After Five Years! The owner reintroduced this polka dot pig squeaky toy to...
Fascinating Pillow Changes Color! The material that this pillow is made from has the ability to change color depending on which...
Crazy Van Plows Through Plaza and Miraculously Misses Everyone! This van crashes through fences at a plaza and the people...
Bobcat Does Balancing Act on Pipe! This piece of equipment can be controlled and balanced so precisely that it can even roll on...
Demonstration Of Man Disarming Two Men Holding Guns On Him. This is impressive, but probably not something you would want to...
Skating Across The Ice Using A Chainsaw For Propulsion! Using a chainsaw to pull yourself across the ice is a great way to save...
Fish Steering Its Tank On Wheels Around a Room! Imagine your fish being able to drive around the house in its aquarium.
Dog Pulls Another Dog From The Rapids By The Stick He Is Carrying! The black dog is going down the rapids holding a good sized...