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Investors saw plenty of juice in first public AT1 from Chile as regulatory framework draws praise
Mexican lender falls short of bond size target as late 2023 momentum fades
◆ US RMBS sales in Europe: immigration or vacation? ◆ UBS AT1 makes nonsense of claims of investor fears ◆ The EU's last hurrah in the SSA market
◆ IG investors comfort eat sweet spreads ◆ What can FIG issuers do now? ◆ US HEI securitizations: mainstream or flash in pan?
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Lloyds announced on Tuesday that it hopes to exercise a regulatory call option in its enhanced capital notes (ECNs) after the Bank of England’s Prudential Regulatory Authority decided not take them into account when calculating the bank’s common equity tier one ratio as part of its stress testing of UK banks this week.
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Royal Bank of Scotland announced on Tuesday that it would issue £2bn of additional tier one capital in 2015, helping to boost its common equity tier one ratio after barely passing the Bank of England’s stress tests.
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Rabobank leveraged its popularity with Japanese investors to sell the first Basel III compliant subordinated deal in Samurai format on Friday. Hitting the Samurai market allowed the issuer to diversify its investor base for capital trades, while securing an attractive cost of funding.
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Russian Standard Bank has increased the late consent fee it is offering investors in a tier two capital bond to upgrade the security to new norms, after failing to entice enough investors before the early bird deadline.
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It has been a successful year for Basel III bonds in Asia, with markets comfortably absorbing sizeable issuance, including the first additional tier one deals from China. But India’s lenders continue to struggle to meet their capital requirements and the wider region’s banks will find life tougher as they continue to grow, writes Lorraine Cushnie.
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Investors are bemoaning proposed amendments to South Africa’s Banks Act, which grant regulators the power to amend a bank’s capital structure.