Coventry takes control of AT1 as regulators loosen refi grip

Participants in the financial institutions bond market were bewildered to see Coventry Building Society paying up to issue a new additional tier one and tender for an old one this week. But the transaction gave other issuers a window into how European rules on bank capital may be applied in practice — something that could pave the way for new and more liberal approaches to calling and refinancing AT1s, writes Tyler Davies.

  • By Tyler Davies
  • 28 Mar 2019

A treasury official at a UK financial institution simply said that he was “puzzled” when Coventry Building Society announced on Tuesday that it was inviting holders of its £400m 6.375% AT1 to tender for their securities, as well as opening books on a new perpetual non-call September 2024.

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All International Bonds

Rank Lead Manager Amount $m No of issues Share %
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1 JPMorgan 327,284.47 1491 8.49%
2 Citi 298,988.13 1274 7.76%
3 Bank of America Merrill Lynch 257,275.15 1079 6.67%
4 Barclays 234,156.65 962 6.07%
5 HSBC 189,507.38 1039 4.92%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
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1 BNP Paribas 37,082.71 171 7.26%
2 Credit Agricole CIB 35,705.77 154 6.99%
3 JPMorgan 29,353.75 74 5.75%
4 Bank of America Merrill Lynch 23,923.68 67 4.69%
5 SG Corporate & Investment Banking 23,666.95 111 4.64%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
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1 JPMorgan 10,133.31 66 9.96%
2 Morgan Stanley 9,408.95 44 9.25%
3 Goldman Sachs 8,721.03 45 8.57%
4 Citi 6,714.07 51 6.60%
5 UBS 5,276.75 29 5.19%