Unicredit to Lessen Debt through Senior Bond Buyback
Unicredit has purchased senior notes worth Eur4.24 billion or US$5.5 billion to be able to lessen debt due between 2015 and 2017. The bond purchase would also be used for liquidity purposes.
The buyback was launched back in April 8. The total amount purchased is higher than the initial Eur4 billion indicated by Unicredit earlier.
In an earlier statement, the bank would offer to buy pack parcels of the 17 securities totalling Eur13 billion to reduce overall debt in the next five years.
According to CEO Federico Ghizzoni, the move is but part of the general reorganization that the bank has to undero in order to improve the profitability during the longest economic slump in the past twenty years.
The offer for the purchase of the bonds would commence on April 8 and end on the 24th but may end the offer earlier, extend it or even reopen it at a later date.