This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
UniCredit’s Bid for Banco BPM Hits a Roadblock Over Russia-Ukraine Crisis
March 4, 2022
Italian lender UniCredit is said to have halted its efforts to acquire Banco BPM after the former’s stock has fallen over 20% since Russia invaded Ukraine. According to Reuters sources, “A strong share price was critical to pulling off the deal to combine the second and third-largest Italian banks, with Banco BPM commanding a premium of at least 40%.” The sources added, “The deal is on hold. UniCredit needs to wait for its stock to recover and for the geopolitical environment to stabilise.” UniCredit had a credit exposure of €14.2bn ($15.7bn) to Russia as of last summer; a full write-off of its Russian business would cost UniCredit €1bn ($1.1bn) and shave-off 35bp off its best-quality capital ratio as per sources.
UniCredit’s USD 8% Perps have been trending lower from 108.75 levels in early Feb to 104.46 currently to yield 5.84%.
For the full story, click here
Go back to Latest bond Market News
Related Posts:
BNP, BBVA, UniCredit Report Strong Profits
August 2, 2021
UniCredit May Take Banca Monte’s Junior Debt
August 11, 2021
UniCredit-Banca Monte Deal Falls Through
October 25, 2021
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.