May 11, 2018 / 8:51 AM / 14 days ago

Hedge fund Caius says uncertainties remain on UniCredit notes

LONDON, May 11 (Reuters) - British hedge fund Caius Capital on Friday said “significant uncertainties” remained on the regulatory treatment of a complex financial instrument as UniCredit’s best-quality capital, in a letter to the bank’s CEO.

Caius Capital asked UniCredit’s CEO for urgent clarification on previous regulatory approvals for its convertible and subordinated hybrid equity-linked securities, or CASHES, and publication of full terms and conditions of its usufruct agreement.

The hedge fund on May 3 asked the European Banking Authority (EBA) to open an investigation into the 2.98 billion euro ($3.55 billion) convertible bond issues in 2008.

“We believe that investors are owed the maximum level of transparency given the materiality of the issues raised in our letter to the EBA,” said the letter on Friday.

$1 = 0.8391 euros Reporting by Maiya Keidan; editing by Carolyn Cohn

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