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UniCredit shareholders back record 13 billion euros cash call

Staff Writer |
Shareholders in UniCredit approved a record 13 billion euros ($14 billion) share issue.

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Italy's biggest corporate cash call was approved with 99.6 of votes by shareholders representing over half the bank's capital.

Answering a request by market watchdog Consob, UniCredit warned one-off fourth-quarter charges totalling 12 billion euros could make it hard to pay coupons on Additional Tier 1 (AT1) bonds due in March if it did not carry out the share issue.

The warning weighed on the bank's two outstanding AT1 bonds on Thursday, pushing yields up from Wednesday's close.

UniCredit can temporarily write down the value of its AT1 bonds if its core capital falls below a certain threshold. It can also cancel their coupon payments at any time.

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