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
Dog Drags Large Branch Home! This dog looks so proud of his find as he drags it home.  It looks like enough wood to start a...
Smoke Man Special FX! This image is motion capture footage with a smoke effect added using Blender's Cycles rendering software.
Cat Bounces Off Walls When Chased By A Dog In The House! The "Prince of Persia" wall bouncing moves by this cat are quite...
Dog Keeps Girl From Wading Too Far Out In The Water! This dog keeps pushing this girl back to the shore to keep her from...
This Mother's Reaction To Her Son's Birthday Present To Her Is Priceless! While talking to her son over the computer on her...
Three Simple Strips of Paper Become Many Amazing Things In The Hands of This Paper Artist! The way that this paper artist rolls...
Fantastic Cube-Shaped Tent Sets Up And Takes Down Quickly! This great tent catches your attention with its quick set up and...
Jack the Cat Has A Surprisingly Deep Meow! Jack's owner shows off his black and white cat's unusual deep meow.The comment on...
Eugene Laferty Jumps From His Damaged Bike Going 120 MPH at World Superbike Race Before an Inferno Crash!
Lifeguard Spots Kid Drowning in Chaotic Wave Pool and Rescues Him! Ask any lifeguard with experience watching a wave pool and...
Underwater Hippo Chases Boat! You can't tell exactly what this thing is until it surfaces and turns into an angry hippo!
Amazing Dog Enthusiastically Bounces Beach Ball Into The Air! Apparently beach ball bouncing is the new thing for dogs.
Elephant Doesn't Know How To React To Charging Baby Buffalo!. This adult elephant chooses to back up in the face of this...
Bear Chases Man on Bike in Malino Brdo Slovaka These two men are travelling at a good speed on the path of this bikepark when a...
Watch This Amazing Video of Lightning Striking a Tree! Interestingly, the bark of the tree wasn't burned or exploded, but...
Policeman's Bodycam Shows Him Rescue an Autistic Child! This footage is from a bodycam installed on an officer in the Topeka...
Cute Baby and Kitty Cuddle Together! This cute and cuddly kitty mews and talks to the baby while they are taking a nap together.
Venezuela's President Maduro Dances on TV At the Same Time That People Riot on the Street Outside! President Maduro dances in a...
Golden Retriever and Girl Taking a Nap in a Hammock - Sheer Contentment! This video of a girl and her dog sharing a hammock for...
Rare Footage of Cuttlefish Mating Shows Vicious Fight Between Two Males Over the Female! Published this week in American...
Fantastic Time Lapse of Blooming Flowers! If we could only watch flowers bloom, it would be amazing, right?  Well, this time...
Plane Crashes into Street near Seattle! This crash happened earlier today.  No injuries were reported, and the pilot was said...
Majestic Lion Startled By Bursting Soap Bubble! This beautiful lion notices a soap bubble floating around his enclosure and...
Dog Digs In Muddy Hole in Lawn Until His Owner Knocks on the Window and Stops Him! This dog is having a great time digging in...
Young Elephant Is Helped Out Of A Stream By Her Aunt! Elephants are Amazing Creatures! This Baby Elephant named Lia, is at...
Javelin Missile Launch Javelin Missiles are useful in a direct-fire approach like an explosion on buildings, stationary targets,...
Mother Bear and Cubs Crossing the Road And Elk Crossing the Road! It is a good day to cross the road!  Here are the Bears!  And...
Beautiful Red Streams of Lava Flowing Into Sea In Hawaii! This colorful scene is nature at its most magnificent, the hot lava...
Bear Cub With A Clam Holding On To It's Paw! This cub stands up as if to say "Help! Mom!!"  But the clam holds firmly to his...
8 Year Old Girl Tries Bionic Hand for First Time - Amazing! Bionic technology has come a long way and makes the prospects look...