Nationwide’s flexible AT1 call option seen as ‘welcome development’

By Tyler Davies
18 Sep 2019

Nationwide Building Society raised £600m of additional tier one (AT1) capital this week with the help of strong support from sterling investors, some of whom were pleased to see that the UK lender had developed a more efficient method for calling and refinancing deals in the asset class.

The interest rate on Nationwide’s AT1 will reset to a spread over five year Gilts in June 2025.

But according to the deal documentation, the issuer has an option to call the bonds at any time in the six months running up to the reset date.  

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