Italy's largest bank in terms of assets had announced it would be buying back senior bonds. Unicredit would be shelling out Eur3.5 billion for the deal, following other banks that have made large gains from the process.
The goal of the buy back program is to reduce the company's debts that would be falling due between 2015 and 2017. Another reason is to better utilize its financial flexibility for future investments to be undertaken.
The purchase offers would be made available starting April 8 and would end by April 24 according to the Italian lending institution. This is just an advisory period, as the bank can terminate the offer earlier than the period set or extend the given period or even reopen it after closure for a later date.
The transaction would involve fifteen (15) separate types of bonds and the repurchase amount would be determined by the first day of the transaction period.
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