Unicredit, the Italian largest Italian Bank and a major European banking group with half of its activities in Italy and the remainder in Germany, Austria and the CEE region announced its capital increase alongside the publication of FY2008 results on March 12th 2009.

The purpose of this rights issue was to ensure independence vis-à-vis State recapitalization plans strengthening capital ratios (Core Tier 1 from 7.6% to 8.4%), increasing flexibility in the current uncertain economic environment and more demanding regulatory environment.

The deal was priced at EUR 1.589, a discount to TERP of 29%, based on previous day's closing price reflecting how well flagged the rights issue was, having been originally announced in late September.

Major shareholders, representing approximately 16% of the company, have committed to take up their rights and the Fondazione Cariverona, not anticipating its intention, took up its rights as well.

The deal, launched in particularly struggling and volatile market environment, is the largest equity offering done so far in the Euro Zone and  was well received by investors, with the stock always trading significantly above subscription price and a massive rights take up coming from Unicredit's retail and strategic investors.