Banco Popular Español will issue a new lower tier two note as part of a liability management exercise in which it is buying back three outstanding hybrid tier one issues.
The bank is offering to exchange the total outstanding of the deals, Eu850m. Morgan Stanley is handling the exercise.
Banco Popular is offering to buy back its Eu300m 6% tier one at 79. The deal has missed its first call date, which was October 20 last year.
It is also