By Rebeca Melvin
New York, Feb. 25 – Itau Unibanco Holding SA priced $700 million subordinated perpetual tier 1 notes (expected ratings: B2//B) at par to yield 4 5/8%, according to a company news release.
The Rule 144A and Regulation S notes are non-callable for five years, with a coupon reset on the fifth anniversary of the issuance date, which will be Feb. 27, 2025, and a reset every five years after that based on the prevailing U.S. Treasury rate.
The company will request approval of Brazil’s Central Bank for the notes to be included in its regulatory capital as additional tier 1 capital, adding 35 bps to the company’s BIS ratio.
Itau Unibanco is a lender based in Sao Paulo.
| Issuer: | Itau Unibanco Holding SA
|
| Amount: | $700 million
|
| Maturity: | Perpetual
|
| Description: | Tier 1 subordinated note
|
| Coupon: | 4 5/8% for five years, then resets every five years based on prevailing rate for U.S. Treasury bonds
|
| Price: | Par
|
| Call: | On any interest payment date after five years
|
| Pricing date: | Feb. 25
|
| Issue date: | Feb. 27
|
| Ratings: | Moody’s: B2
|
| Fitch: B
|
| Distribution: | Rule 144A and Regulation S
|
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