UniCredit SpA (UCG), Italy’s biggest bank, is offering to buy back senior bonds for as much as 3.5 billion euros ($4.5 billion) to cut borrowings and adjust the maturities on its debt.
The offer will run from April 8 through April 24, the Milan-based lender said in a statement today. The bank is offering to buy back part of 17 securities that total 13 billion euros, reducing the amount UniCredit would need to pay back in 2015 through 2017.
UniCredit expects lower net interest income this year as loan demand weakens and funding costs increase, the bank said on March 15. Chief Executive Officer Federico Ghizzoni is reorganizing the lender to improve profitability as Italy’s longest economic slump in 20 years and tougher industry rules force higher provisions.
The bank will set the purchase prices by 9:30 a.m. on the first day of the offer, according to the statement.
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