Regulatory Capital - All Articles

  • Clashes over Cashes as bondholders fight BNPP (Updated)

    BNP Paribas held firm on Friday amid a bondholder rebellion as investors spurned a cash tender offer it made earlier in the week for €3bn of Fortis Bank convertible and hybrid equity-linked securities (Cashes).

    • 30 Jan 2012
  • CASA, UniCredit target €5.1bn buybacks as capital generation tops agenda for FIG

    Crédit Agricole and UniCredit offered to buy back up to €5.1bn of subordinated debt this week, highlighting the fact that despite January being a crucial month for funding, capital remains top of the agenda for Europe’s largest financial institutions.

    • 27 Jan 2012
  • Swiss Re issues new-style subordinated perp

    Swiss Re this week followed in the footsteps of Zürcher Kantonalbank, launching a debut new-style subordinated perpetual convertible note on Thursday, a Sfr200m minimum 7.25% non-call five year.

    • 27 Jan 2012
  • Commerz turns to synthetic securitisation to plug capital hole

    Commerzbank has launched a synthetic securitisation of its Mittelstand loan portfolio, aiming to sell €160m of equity risk and €30m of mezzanine risk as part of frantic efforts by the bank to fill its €2.3bn capital hole.

    • 27 Jan 2012
  • Markit Data 1239

    • 27 Jan 2012
  • Almunia gives nod to state aid

    The European Commission on Tuesday gave its clearest signal yet that it will be tolerant of banks that resort to government funds to reach the European Banking Authority’s 9% core capital ratio, which is required by the end of June.

    • 27 Jan 2012
  • Aegon returns to dollar retail market for capital trade

    Capital and liquidity are not luxuries, Aegon said this week after it returned to the US dollar retail market following a five year absence with a tier two issue.

    • 27 Jan 2012
  • FSB: Swiss Cocos under scrutiny for global use

    The Swiss approach to the use of contingent capital instruments is likely to be a benchmark for other regimes, judging by the outcome of a peer review of Switzerland’s financial system by the Financial Stability Board, a global body that coordinates regulatory work across the world.

    • 27 Jan 2012
  • Outrights ponder €3bn Fortis Cashes tender

    BNP Paribas on Thursday launched a tender offer for €3bn of convertible and subordinated hybrid equity-linked securities (Cashes) issued by Fortis Bank, in a deal that unwinds a complex arrangement underlying the 2009 restructuring of the Dutch lender. The go-ahead for the transaction depends on the bank getting a 50% acceptance rate, which is no certainty given some outright investors’ hesitation to sell, according to one equity-linked specialist away from the deal.

    • 27 Jan 2012
  • Swiss Cocos under scrutiny for global use: FSB

    The Financial Stability Board has commended Switzerland for its bank regulation reforms, saying the use of contingent capital (Coco) there will influence the instruments' role at the global level.

    • 26 Jan 2012
  • BNPP tenders for €3bn Fortis Cashes in Ageas unwind

    BNP Paribas on Thursday launched a tender offer for €3bn of convertible and subordinated hybrid equity-linked securities (Cashes) issued by Fortis Bank, in a deal that unwinds a complex arrangement underlying the 2009 restructuring of the Dutch lender.

    • 26 Jan 2012
  • Swiss Re issues pioneering new style subordinated perp

    Swiss Re has followed in the footsteps of Zürcher Kantonalbank by launching its debut new style subordinated perpetual convertible note on Thursday morning, a Sfr200m minimum 7.25% non-call five year.

    • 26 Jan 2012
  • UniCredit eyes more core with buyback

    As its blockbuster rights issue approaches its close, UniCredit is targeting a further increase to its core capital with a below par buyback of up to €3bn of tier one and tier two securities.

    • 25 Jan 2012
  • Aegon’s non-cumulative tier two hits $500m

    US retail accounts provided the bulk of demand for Aegon’s $500m issue on Tuesday, showing that there is a buyer base for non-cumulative tier two paper.

    • 25 Jan 2012
  • Commerz delays bonuses as EBA capital deadline looms

    Commerzbank has decided to postpone this year’s round of bonuses until July, and will deliver these payments mostly in shares, well placed bankers told EuroWeek on Wednesday.

    • 25 Jan 2012
  • Almunia gives nod to state support for EBA capital ratio

    The European Commission on Tuesday gave its clearest signal yet that it will be tolerant of banks that resort to government funds to reach the European Banking Authority's 9% core capital ratio, which is required by the end of June.

    • 24 Jan 2012
  • Aegon taps dollar retail for tier two

    Dutch insurer Aegon is out with the year’s second insurance capital issue, taking orders from US retail investors for a 30 non-call 5.5 year tier two deal that has non-cumulative coupons.

    • 24 Jan 2012
  • Vickers and European capital rules are compatible, says Barnier

    Capital rules proposed by the UK’s Independent Commission on Banking would not conflict with a single rule book for banks in Europe, Michel Barnier, European Commissioner for internal market and services, said on Monday.

    • 23 Jan 2012
  • StanChart finds buyers but tier twos will stay scarce

    Standard Chartered enjoyed strong demand for a $1bn tier two issue this week that achieved a slim spread to its senior paper but bankers don’t expect much more issuance in the format. While the UK-headquartered bank had a specific motivation for issuing this week, bankers said that tier two issuance would remain light until there is greater clarity on European capital rules.

    • 20 Jan 2012
  • ING behind schedule with strategy to exit state aid in 2012

    ING Bank is to push back a €3bn repayment of state support that it had been planning to make in the next four months — but the bank said it nonetheless hoped to return the funds by the end of the year.

    • 20 Jan 2012
  • Banrisul looks for tier two as four debutants join pipeline

    Four debut issuers joined the LatAm pipeline this week including the year’s first high yield candidate, encouraged by a stronger global market tone and surging investor demand for the region.

    • 20 Jan 2012
  • NBG covered bond buyback a success despite ‘challenges’

    Some 43% of National Bank of Greece covered bondholders submitted their paper for buyback below par, helping the bank reach a €300m core tier one gain through its liability management exercise.

    • 20 Jan 2012
  • ZKB issues landmark Basel III compliant tier one perp

    Zürcher Kantonalbank issued the first ever Basel III compliant tier one security this week, a Sfr590m 3.5% perpetual non-call 5-1/2 year deal, helped by the quick-moving Swiss regulator.

    • 20 Jan 2012
  • ICMA calls on EBA to allow tier two Coco

    The International Capital Market Association went on the offensive over the European Banking Authority’s contingent capital instrument this week, calling for a tier two structure

    • 20 Jan 2012
  • StanChart success but tier twos will stay scarce

    Standard Chartered’s $1bn tier two issue has been hailed as a success by market participants, but they say regulatory dynamics mean that further similar supply will be light.

    • 19 Jan 2012
  • Commerz makes capital progress

    Commerzbank on Thursday reiterated that it would not need additional state aid to meet a 9% European Banking Authority core capital target by the end of June and again indicated that it would meet the requirement without tapping shareholders.

    • 19 Jan 2012
  • ICMA lays out EBA coco objections in letter to Enria

    The International Capital Markets Association has gone on the offensive over the European Banking Authority’s contingent capital instrument, setting out its members’ objections to the structure in a letter to the EBA’s chair Andrea Enria.

    • 18 Jan 2012
  • ZKB to price landmark Basel III-compliant T1 perp

    Zürcher Kantonalbank is in the Swiss franc market with the first ever Basel III-compliant tier-one subordinated bond — a perpetual 3.5% non-call 5-1/2 year.

    • 18 Jan 2012
  • StanChart tops $2.5bn for tier two

    Standard Chartered has generated more than $2.5bn of demand for an old style tier two issue that will be priced on Wednesday afternoon at 390bp over US Treasuries — and which has impressed with the strength of demand.

    • 18 Jan 2012
  • High covered bond take-up in NBG buyback despite ‘unique challenges’

    Some 43% of National Bank of Greece covered bondholders submitted their paper for buyback below par, helping the bank reach a €300m core tier one gain through its liability management exercise.

    • 17 Jan 2012
  • EFG hits 33% take-up in sub-exchange

    Investors tendered a third of EFG International tier one bonds eligible for exchange into a Basel III compliant tier two issue this week.

    • 13 Jan 2012
  • Tamweel completes strong week for sukuks with $300m deal

    Tamweel, the Dubai-based mortgage company, was given a warm welcome in the Islamic finance market on Thursday when it sold a $300m tranche of a $1bn sukuk programme.

    • 13 Jan 2012
  • Hybrid hopes rise on temp write-down talk for CRR I

    The future of European hybrid capital brightened this week when the European Council opened the door to temporary write-down features for tier one securities under incoming CRD IV and CRR I rules.

    • 13 Jan 2012
  • Blowout book for Zurich but others will wait as regs hamper hybrid bond plans

    Intense demand for Zurich Insurance’s $500m perpetual issue this week underscored the depth of liquidity available to strong European names in the Asian private banking market. But the deal is unlikely to herald a flood of further hybrid capital supply as banks wait for more clarity on regulations.

    • 13 Jan 2012
  • Banco do Brasil delivers Basel-proof hybrid

    Banco do Brasil attracted almost a six times oversubscription on Thursday for a ground-breaking $1bn perpetual tier one deal that has been thoroughly future-proofed to comply with Brazil’s anticipated implementation of Basel III legislation later this year.

    • 13 Jan 2012
  • Markit Data 1237

    • 13 Jan 2012
  • Strong interest for Zurich, Banco do Brasil, but regs will limit supply

    Strong demand for Zurich Insurance and Banco do Brasil’s deals show the depth of Asian retail demand for hybrid capital trades — but further supply depends on regulatory constraints, say bankers.

    • 12 Jan 2012
  • Zurich perp good omen for FIG capital

    Hybrid capital specialists say strong demand for Zurich Insurance’s perpetual tier two issue bodes well for Asian retail demand for other FIG capital transactions.

    • 11 Jan 2012
  • EFG hits one-third participation in sub exchange

    Investors tendered a third of EFG International tier one bonds eligible for exchange into a Basel III compliant tier two issue, in an offer that closed on Monday.

    • 11 Jan 2012
  • UniCredit rallies as value shines through

    Bookrunners for UniCredit’s €7.5bn rights issue were adamant on Monday that the shares and rights would stabilise as the cheap valuation came to the fore. On Tuesday morning their confidence appeared justified — the shares rallied 6.7% to 12.00 GMT and the rights soared 77% to close the gap to their implied price.

    • 10 Jan 2012
  • Santander tweaks exchangeable to meet 9% EBA target

    Banco Santander has transferred a 4.41% stake in its Brazilian subsidiary to an undisclosed counterparty in one of several measures that have helped it meet the European Banking Authority’s 9% core equity tier one ratio.

    • 09 Jan 2012
  • Markit Data 1236

    • 06 Jan 2012
  • Old-style hybrids set for regulatory reprieve

    Expectations for subordinated debt and hybrid capital issuance this year have leapt following a European Parliament report proposing that such issues be grandfathered under the capital requirements regulation (CRR I).

    • 06 Jan 2012
  • Market calls for early move on €50bn Spain provisions call

    Market pressure could force Spain’s banks to take upfront provisions of €50bn against non-performing real estate loans — rather than over several years as suggested by the country’s finance minister — analysts and bankers have warned.

    • 06 Jan 2012
  • Capital by any means: Europe’s banks race out of new year traps

    Front-running the 30-odd European banks that have to increase their capital ratios by June, UniCredit revealed terms on its crucial €7.5bn rights issue on Wednesday. But it encountered a torrid reception, revealing just how difficult it will be for banks to secure institutional investor support for bank recapitalisations this year.

    • 06 Jan 2012
  • EFG extends exchange deadline

    Switzerland’s EFG International has extended the deadline for holders of a tier one note to exchange it into a Basel III compliant tier two bond, citing delays over the holiday period.

    • 06 Jan 2012
  • RBS bankers admit 5,000 job cuts, confident on debt

    Royal Bank of Scotland bankers have responded with a mixture of resignation, frustration and impatience to leaks about the strategic review of its investment bank. Sources say the bank envisages a maximum of 5,000 job cuts in its investment bank, half the number reported elsewhere this week.

    • 05 Jan 2012
  • Provisioning call intensifies Spanish bank worries

    Market pressure could force Spain’s banks to take upfront provisions of €50bn against non-performing real estate loans — rather than over several years as suggested by the country’s finance minister — analysts and bankers have warned.

    • 05 Jan 2012
  • Europe’s banks split on capital plans ahead of EBA deadline

    With capital in increasing focus this year, tier one hybrids and the European Banking Authority’s contingent capital securities are being considered by the strongest bank borrowers. But FIG market participants are pessimistic about attempts to change the EBA’s Coco term sheet, and say that most banks will use deleveraging, profit retention and liability management exercises to reach the 9% core capital requirement by the end of June.

    • 04 Jan 2012
  • Barclays ups capital relief game

    Barclays Bank has structured a capital relief deal on a €5.7bn book of large corporate loans called Papillon 2011-5. The bank has sold part of the 5% first loss piece, retaining the rest of the risk in the form of three credit default swaps between Barclays entities.

    • 04 Jan 2012
  • NBG set to buy back covered paper above trading levels

    National Bank of Greece is set to increase its core tier one capital by buying back its only covered bond alongside several tier one notes in a tender operation launched on Tuesday morning.

    • 03 Jan 2012