UniCredit plans bond sale

 
Marion Dakers
ITALIAN bank UniCredit is looking to sell up to €25bn in covered bonds, hot on the heels of its €7.5bn rights issue to shore up its capital base, according to regulatory filings.

UniCredit said in a prospectus filed with the Luxembourg Stock Exchange that the proceeds would be used “for general funding purposes of the group (including funding of the mortgage loans business of the group)”.

The bonds will be guaranteed by UniCredit OBG Srl, an Italian vehicle for covered bonds.

The bank is arranging the bonds through its London branch, the documents show.

UniCredit’s deeply-discounted rights issue, conducted to bolster its capital ratio, is due to close on Friday. It is regarded as a crucial test of investors’ confidence in the European banking sector.