The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

UniCredit: No ex-Italy holdco ‘at this stage’ says Mustier

Tighter BTP-Bund spreads obviate the need for an international sub-holding, UniCredit CEO Jean Pierre Mustier tells Euromoney.

Unicredit SpA CEO Jean Pierre Mustier Interview
Bloomberg via Getty Images

UniCredit will only set up a separate legal organization for its international operations if spreads between Italian and German government bonds are more than twice as wide as today, chief executive Jean Pierre Mustier tells Euromoney.

The CEO wants the sub-holding company to be ready in the event of a renewed spike in Italian sovereign risk, as “we like to be prepared”, he says.

Questions about the possible new structure have been growing since the Milanese group named former Italian finance minister Pier Carlo Padoan as its next chairman in October. Around the same time, it hired Goldman Sachs and JPMorgan to advise on an update to its 2020 to 2023 strategic plan, due in early 2021.

UniCredit first announced the sub-holding scheme in late 2019 as part of its existing 2023 plan. The Italian government bond (BTP)-Bund spread had been about 250 basis points for much of 2018 and 2019, while the Northern League was in a populist governing coalition with the Five Star Movement.

However, the bank has not moved forward with the scheme yet. And according to Mustier, it is only worthwhile doing so if the spread between 10-year BTPs and their German equivalents (Bunds) is well above 300 basis points and closer to 400bp.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree