MILAN, Sept 18 Italy's UBI Banca said on Wednesday it had bought back subordinated Tier 2 notes for a nominal amount of 70.35 million euros ($93.91 million) in a tender offer prompted by regulatory changes and market conditions.
The outstanding amount of the Tier 2 notes, which mature in 2018, was now 111.30 million euros, UBI said.
From October the conditions of the bond - a callable step-up floater - will be modified so that it becomes senior unsecured debt, UBI said when it announced the tender offer.
UBI has also said it would not call back the bond at the first available date which was in October. ($1 = 0.7491 euros) (Reporting by Valentina Za, editing by Danilo Masoni)