UniCredit AT1 Bond Rises on Report Bank May Exercise Call Option

A €1.25 billion additional tier 1 bond issued by UniCredit SpA is reversing losses on Friday afternoon after a report that the lender is leaning toward redeeming it at the first opportunity in June.

The note’s price is rising to 95.4 cents on the secondary market from lows of 94.1 cents, based on data compiled by Bloomberg. It ended Thursday at a price of 96.4.

A spokesperson at UniCredit declined to comment on whether the bank will exercise the call option. On Friday afternoon, Reuters reported that UniCredit is leaning toward repaying the perpetual note, citing an unidentified ...