Regulatory Capital - All Articles

  • DBP turns to retail to top up capital, prepares for LT2 refi

    Development Bank of the Philippines has closed its Ps5.65bn retail-targeted lower tier two deal, swelling its capital adequacy ratio by around 2.50% for the next year and a half.

    • 29 Mar 2012
  • Markit Data 1248

    • 29 Mar 2012
  • DBP’s Quirino’s plans for the year ahead

    Development Bank of the Philippines closed an issue of Ps5.65bn ($131.38m) lower tier two notes last week, turning to retail investors to find most of the money it needs to redeem another subordinated deal that falls due in September 2013.

    • 29 Mar 2012
  • Capital buybacks roll on as BPER targets tier two

    Bank capital buybacks continued this week, as Italy’s Banca Popolare dell’Emilia Romagna launched a new cash offer while Spain’s Banco Financiero y de Ahorros and Germany’s Munich Re wrapped up tenders. But, as in other areas of the market, the week ahead is expected to be quiet.

    • 29 Mar 2012
  • Talanx returns to capital as IPO rumours build

    German insurance holding company Talanx drew in €850m of interest from real money and retail investors as it staged its bond market return, but bankers said more insurance deals could be on hold until after Easter.

    • 29 Mar 2012
  • Talanx returns to capital as IPO rumours build

    Talanx returned to capital issuance after a seven year absence from the market on Wednesday, drawing in €850m of orders from over 100 accounts ahead of an expected initial public offering.

    • 28 Mar 2012
  • BFA buys back €280m of capital

    As Bankia found decent take-up on its RMBS buyback (see separate story), majority shareholder Banco Financiero y de Ahorros spent €182m buying back tier ones and tier twos below par, in a deal that closed on Wednesday.

    • 28 Mar 2012
  • Minsheng tops up capital with $1.4bn share placement

    China Minsheng Banking Corp raised HK$11.21bn ($1.44bn) at the start of this week, after launching a share placement in Hong Kong. The bank managed to price the deal above the middle of its range after getting strong demand — and allocated around $1bn to just 10 investors.

    • 27 Mar 2012
  • Talanx adds to insurance flurry with 30NC10

    Following well received insurance capital trades from Munich Re and Swiss Re last week, German insurance holding company Talanx raised over €750m of demand on Wednesday for its 30 year non-call 10 subordinated transaction.

    • 27 Mar 2012
  • DBP pulls off sub debt refi with retail help

    Development Bank of the Philippines has closed its Rp5.65bn retail-targeted lower tier two deal, swelling its capital adequacy ratio by around 2.50% for the rest of the year.

    • 26 Mar 2012
  • BPER tenders for tier two

    Banca Popolare dell’Emilia Romagna is coming back for a second liability management pass on lower tier capital that is callable this year.

    • 25 Mar 2012
  • CS raises the roof on buyback

    An overwhelming investor response led Credit Suisse to increase the buyback cap on its cash tender offer this week, saying it would purchase up to Sfr4.75bn of tier one and tier two securities.

    • 23 Mar 2012
  • Insurers eye capital as MunRe dual tranche flies

    More insurance capital trades could be on their way, bankers said this week, after investors participated in droves in Munich Re’s 30 year non-call 10 subordinated issue, as well as in Swiss Re’s dollar deal.

    • 23 Mar 2012
  • BFA returns for seconds with more conventional buyback

    After its no-price buyback late last year, Banco Financiero y de Ahorros came back for a second pass at a cash tender on tier one and tier two securities this week.

    • 23 Mar 2012
  • Markit Data 1247

    • 23 Mar 2012
  • Munich Re takes out 40% of old T2

    Munich Re wrapped up its tier two management exercise on Friday, hitting a 39% take-up on its buyback after selling a new dual tranche issue on Wednesday.

    • 23 Mar 2012
  • Swiss Re goes its own way with novel structure

    Unimpressed by investment banks’ ideas on insurance capital, Swiss Re this week printed an unusually structured $750m capital deal that it designed in-house. It is unlikely to be the last — the reinsurance company has said it had more ideas for innovative hybrids up its sleeve.

    • 23 Mar 2012
  • Investors pile in for Munich Re, Swiss Re

    Hefty oversubscription has allowed Swiss Re and Munich Re to bring in pricing substantially from initial guidance levels. Swiss Re is set to size its innovative perpetual capital instrument at $750m early on Thursday afternoon, a day after Munich Re printed a dual tranche €900m and £450m 30 year non-call 10 trade.

    • 22 Mar 2012
  • Macquarie releases firm guidance for tier one

    Macquarie has firmed up price guidance for its hybrid tier one bond, moving to the bottom of the low 10% indication it approached investors with at the start of the week. It set the range at between 10% and 10.25% in late Asian trading on Tuesday.

    • 21 Mar 2012
  • Macquarie tier one expected at $250m

    Bankers away from Macquarie Bank’s hybrid tier one bond say the deal could be $250m in size and to come at the wide end of guidance, to yield 10.25%.

    • 21 Mar 2012
  • Munich Re, Swiss Re show divergence of insurance capital

    Munich Re and Swiss Re highlighted the breadth of formats to be seen in insurance capital on Wednesday, tapping very different markets and at very different spread levels.

    • 21 Mar 2012
  • Munich Re deal imminent as roadshow winds up

    Munich Re could announce an insurance capital transaction in the next 24 hours as its European roadshow comes to an end, EuroWeek Bank Finance understands.

    • 20 Mar 2012
  • Macquarie looks at 10% for innovative tier one

    Macquarie is taking indications of interest for its hybrid tier one security in the low 10% area, having pushed back the trade after a downgrade last week.

    • 19 Mar 2012
  • Structures come into focus for Swiss Re, Munich Re capital trades

    Munich Re’s tier two security being marketed this week will take 30 year non-call 10 format and will include a dividend pusher, according to ratings reports released on Monday. The news came amid greater clarity on the shape of an insurance capital transaction that Swiss Re is marketing this week.

    • 19 Mar 2012
  • CS raises the roof on buyback

    Credit Suisse has increased its buyback ceiling after meeting an overwhelming response to its cash tender offer on tier one and tier two securities.

    • 19 Mar 2012
  • Hybrids ahead? FIG markets wait for finishing touches on regs

    Europe’s banks are hoping for clarity on hybrid capital in the coming weeks, with a consultation that will bring them much closer to being able to issue new style tier one securities with confidence. Among the rush of details expected from the European Banking Authority on bank capital, rules on temporary principal write-down are the most hotly anticipated element. EuroWeek’s Katie Llanos-Small spoke to bankers, investors and issuers across the bank capital market this week about how write-down/write-up structures will work — and who will buy them.

    • 16 Mar 2012
  • New bank hybrids could start in Q2 as EBA guidance draws near

    Europe’s banks could return to selling tier one securities as soon as the second quarter, as regulatory fine-tuning on hybrid capital instruments nears its end, bankers said this week.

    • 16 Mar 2012
  • Investors snap up Dexia Credit exit option

    Dexia Credit Local hit a 92% take-up rate on an offer to buy back a tier one at less than a quarter of par value, it announced on March 15. Investors tendered €643.8m of the €700m tier one note that was eligible for buyback at 24% of par.

    • 16 Mar 2012
  • Markit Data 1246

    • 16 Mar 2012
  • Insurers return as Munich Re, Swiss Re mandate

    Two capital transactions from insurers could be in the market as soon as next week, with Munich Re and Swiss Re announcing roadshows in Europe and Asia respectively.

    • 16 Mar 2012
  • RBS completes tier two swap, amid rally

    Royal Bank of Scotland announced a 58% take-up on its Australian dollar tier two swap on March 9, as the lender’s new euro and dollar securities rallied strongly.

    • 16 Mar 2012
  • Investors snap up Dexia exit option

    Dexia Credit Local hit a 92% take-up rate on an offer to buy back a tier one at less than a quarter of par value, it announced on Thursday. Investors tendered €643.8m of the €700m tier one note that was eligible for buyback at 24% of par.

    • 15 Mar 2012
  • Hybrids, tier twos in sight for FIG borrowers

    FIG issuers are studying their options for issuing subordinated paper and hybrid capital, driven by changing regulations and growing concerns over asset encumbrance, bankers said on Wednesday.

    • 14 Mar 2012
  • Munich Re targets tier twos with buyback, new issue

    Munich Re could issue a new tier two security as soon as next week, after it announced a roadshow at the same time as it opened a tender offer on an old note on Tuesday.

    • 13 Mar 2012
  • Markit data 1245

    • 09 Mar 2012
  • Investors tender 42% in Banco CAM buyback offer

    Banco CAM saw a 42% take-up rate on a discounted capital buyback this week.

    • 09 Mar 2012
  • Fitch slashes hybrid ratings

    Fitch cut ratings on over 1,000 bank capital securities on Thursday night as it introduced its new rating criteria. A smattering of ratings remained stable or were upgraded.

    • 09 Mar 2012
  • BBVA eyes tier one on Unnim acquisition

    BBVA said on Thursday that it was planning a EBA-compliant, non-convertible tier one instrument, as well as liability management measures, to raise capital after its acquisition of Unnim Banc from Spain’s bail-out agency.

    • 09 Mar 2012
  • CS wraps up high trigger deals with Sfr700m BCN

    Credit Suisse this week issued what is likely to be its last high trigger buffer capital note (BCN) for the foreseeable future, stealing the limelight with a Sfr700m ($762m) deal that was increased from a launch size of just Sfr250m.

    • 09 Mar 2012
  • Credit Suisse tidies up old capital ahead of Basel III

    Credit Suisse launched a Sfr4bn ($4.4bn) clean-up of its old capital securities this week, as it pressed ahead with a new issue compliant with incoming regulations.

    • 09 Mar 2012
  • Debt for equity swap efficient, says Commerz

    Commerzbank booked a €776m core tier one gain through its debt for equity swap this week, a deal that the bank’s head of capital management said was an efficient way to increase capital.

    • 09 Mar 2012
  • RBS hits 62% take-up on T2 swap as investors cash in

    In a deal propelled by interest in the new tier two notes on offer, investors tendered two thirds of eligible securities in Royal Bank of Scotland’s debt swap, the bank said on Thursday.

    • 09 Mar 2012
  • Dollars, euros rally as RBS completes tier two swap

    Royal Bank of Scotland announced a 58% take-up on its Australian dollar tier two swap on Friday morning, as the lender’s new euro and dollar securities rallied strongly.

    • 09 Mar 2012
  • Retail investors look at Austrian buybacks

    Retail accounts — an investor base not known for their propensity to taking haircuts — played an important role in Austrian banks’ capital generating buybacks over the past week. Bawag, Erste Bank and Raiffeisen Bank International bought back a combined €1.3bn in deals that closed last Friday (March 2) and on Monday.

    • 09 Mar 2012
  • CS increases minimum BCN size to Sfr400m

    After one day of bookbuilding, Credit Suisse on Thursday morning revised the minimum size for its self-led 10 non-call five year tier two buffer capital note (BCN), from Sfr250m to Sfr400m, on the back of strong investor demand. It also set the coupon at the middle of the price range, at 7.125%.

    • 08 Mar 2012
  • Macquarie aims for Basel nod with exchangeable tier one

    Macquarie Bank is hitting the road this week to pitch a $500m tier one hybrid, becoming the first bank across Asia Pacific to attempt a Basel III-compliant deal in the international market. The bank is planning a perpetual exchangeable deal, and will update investors this week on the structure.

    • 08 Mar 2012
  • BEA saves 30bp by turning to Singapore

    Bank of East Asia made its debut in Singapore’s local bond market this week, boosting its capital levels with a lower tier two issue — and achieving a big saving over what it would have paid in the dollar market.

    • 08 Mar 2012
  • Macquarie eyes Basel with latest bank capital deal

    Macquarie Bank is attempting a novel tier one hybrid bond, aiming to raise $500m from a deal that will use an exchangeable option to take out investors. It will be the first dollar bond from any Asia Pacific bank that has been designed with Basel III standards in mind.

    • 08 Mar 2012
  • BBVA eyes tier one on Unnim acquisition

    BBVA said on Thursday that it was planning a EBA-compliant, non-convertible tier one instrument as well as liability management measures to raise capital after its acquisition of Unnim Banc.

    • 08 Mar 2012
  • Bail-in could eclipse encumbrance for senior buyers, say investors

    Increasing encumbrance of balance sheets is at risk of sidelining senior unsecured investors in a default scenario, especially in the wake of the European Central Bank’s second three year long term refinancing operation (LTRO), said analysts at Barclays Capital on Thursday. Bankers said encumbrance was becoming more of an issue for investors, but some senior buyers said it would be eclipsed by incoming bail-in legislation.

    • 08 Mar 2012
  • Investors tender 42% in CAM buyback

    Banco CAM saw a 42% take-up rate on its buyback of two tier two securities this week.

    • 07 Mar 2012
  • CS brings ‘generous’ Swissie BCN at 7%-7.25%

    Credit Suisse launched its self-led 10 non-call five year tier two buffer capital note on Wednesday morning to much interest in the Swiss franc market, with rival bankers saying they expect the deal to go well.

    • 07 Mar 2012
  • Austrian buybacks draw in retail accounts

    Retail investors played an important role in below par capital buybacks from two of the three Austrian banks to have closed transactions in recent days. Bawag, Erste Bank and Raiffeisen Bank International bought back a combined €1.3bn in deals that closed on Friday and Monday, with retail participation particularly strong on two of the trades.

    • 06 Mar 2012
  • CS Swiss franc Coco takes shape

    Credit Suisse is expected to issue a Sfr500m-Sfr1bn 10 non-call five year buffer capital note in Swiss francs this week. Initial price thoughts on the contingent capital instrument are due early on Tuesday afternoon, but the deal may come through the 7.87% yield area where the bank’s dollar BCNs are trading.

    • 06 Mar 2012
  • Debt for equity strategy efficient, says Commerz capital head

    Commerzbank’s debt for equity swap proved an efficient way to raise core tier one, the bank’s head of capital management told EuroWeek Bank Finance.

    • 06 Mar 2012
  • Piraeus and Dexia target capital accretion with deeply discounted buybacks

    Piraeus Bank and Dexia Credit Local are buying back capital securities at deep discounts to par in a bid to create capital.

    • 05 Mar 2012
  • Commerz books €776m capital in debt for equity swap

    Commerzbank has booked €776m in core tier one capital through its exchange of subordinated debt and hybrids for equity.

    • 05 Mar 2012
  • CS preps for Basel III with Sfr4bn buyback

    Credit Suisse is aiming to clean up its capital structure ahead of Basel III with a buyback targeting Sfr10bn ($10.9bn) of tier one and tier two securities.

    • 05 Mar 2012
  • RBS targets capital, calls tier two paper with exchange

    Royal Bank of Scotland is offering holders of tier two paper coming up for call this year a chance to swap into new notes, in a deal that has been expected since Lloyds brought a similar one in December.

    • 02 Mar 2012
  • Credit Suisse picks ‘good timing’ to head out on the road for first ever Swissie Coco

    Credit Suisse is set for a trip around Switzerland on Monday and Tuesday to introduce investors to its Swiss franc buffer capital note. If the bank decides to come to the market thereafter, it would be the first contingent convertible (Coco) issued by a financial institution in the local currency.

    • 02 Mar 2012
  • Banco do Brasil satisfies lust for its tier one with $750m tap

    Banco do Brasil responded on Monday to the ravenous follow-on demand for its ground-breaking Basel III-compliant perpetual tier one capital issue with a $750m reopening that was priced 75bp tighter than the original issue.

    • 02 Mar 2012
  • CAM buys back sub debt in T2 clean up

    Banco CAM launched a buyback of tier two paper on February 24, in a deal that is intended to tidy up the lender’s subordinated debt as it is acquired by Banco Sabadell. HSBC is dealer manager.

    • 02 Mar 2012
  • DNB’s new arrival adds to future-proofed T2 family

    Norway’s DNB Bank added to the growing family of regulation-ready tier two on Thursday when it printed a €750m 10 year non-call five transaction designed to comfort itself, as well as investors, over future regulatory treatment.

    • 02 Mar 2012
  • Markit Data 1244

    • 02 Mar 2012
  • Strong take-up for Egg Banking buyback

    Egg Banking plc met strong take-up on buybacks of two subordinated securities at prices close to par this week.

    • 02 Mar 2012
  • Jyske Bank raises equity for Danish consolidation

    Jyske Bank, Denmark’s third largest lender, signalled on Wednesday that it means to be at the forefront of industry consolidation in the country as it raised Dkr1.16bn ($210m) in a capital hike to fund acquisitions and more aggressive growth.

    • 01 Mar 2012
  • DNB tier two books hit €1.5bn, but investors take fine-tooth comb to docs

    Investors have placed over €1.5bn in orders for DnB Bank’s tier two issue, in a deal that follows other Scandinavian supply and has drawn careful attention from big accounts.

    • 01 Mar 2012