Commerzbank sets higher tier two coupon in falling market

Commerzbank set the coupon on a new eight year bullet tier two deal higher than expected as the bank responded to difficult market conditions. The deal, which Commerzbank is launching as part of a liability management exercise and a wider tier two capital optimisation exercise, will have a 6.375% coupon. Last week, leads Barclays Capital, BNP Paribas, Commerzbank and Citi set the minimum coupon at 6.125%.