Pimco Said to Be Buyer of UniCredit's Pricey $3 Billion Bond
- UniCredit paid substantially less for similar bonds earlier
- Pressure on Italian sovereign debt seen to hurt fundraising
This article is for subscribers only.
UniCredit SpA turned to Pacific Investment Management Co. to raise $3 billion, at a cost that’s six times greater than what it paid in January amid stress in the market.
Pimco was the sole buyer of the bank’s surprise sale of five-year bonds, two people with knowledge of the transaction said, asking not to be identified because the matter is private. The bank said the dollar-denominated five-year notes pay the equivalent of 420 basis points over the euro swap rate. That compares with a spread of 70 basis points over swaps it paid on five-year euro senior non-preferred bonds in January.