Regulatory Capital - All Articles

  • Erste launches euro tier two, UniCredit taps senior as Spain report underwhelms

    Erste Group Bank and UniCredit hit the tier two and senior unsecured markets on Monday, while several second tier European financial institutions prepared senior deals.

    • 30 Sep 2012
  • Cautious welcome for Spanish stress tests

    Spain’s bank stress test results were met with cautious optimism on Monday morning, as analysts and bankers fretted over the low capital ratio target but praised the stringent testing assumptions.

    • 30 Sep 2012
  • BBVA plans 5% haircut on €500m Unnim debt to equity swap

    Spain’s BBVA is offering to swap subordinated debt and preference shares in Unnim Banc into equity at a discount to par value.

    • 27 Sep 2012
  • Citic Bank raises $300m from LT2 bond

    Hong Kong’s Citic Bank International raised $300m from a lower tier two bond last week, becoming the third Asian bank to issue old-style subordinated debt this month as the region’s lenders try to beat impending Basel III rules.

    • 27 Sep 2012
  • Worries grow over Spain bank recap funding

    Fears mounted this week that the manner in which Spain might be required to recapitalise its banks could end up creating more pain for the sovereign.

    • 27 Sep 2012
  • Bail-in focus prompts search for new class of FIG sub debt

    The implementation of bail-in may still be in its formative stages, but capital structurers are pressing ahead with ideas for a new class of debt which could sit above tier two, protecting senior bondholders from suffering losses by putting an extra tripwire in the capital structure, writes Will Caiger-Smith.

    • 27 Sep 2012
  • Poor Erste performance halts tier two issuers

    A poor secondary market backdrop overshadowed the textbook execution of Erste Group Bank’s $500m Asia-targeted tier-two deal this week, leaving Raiffeisen Bank International and other issuers waiting for conditions to improve.

    • 27 Sep 2012
  • Markit Data 1274

    • 27 Sep 2012
  • RBI bides time as market wobbles, but more tier two in pipe

    Austria’s Raiffeisen Bank International is likely to wait to launch its Asia-targeted Reg S dollar tier two deal until at least the second half of next week. A jittery market is precluding issuance this week and holidays in Hong Kong and Singapore make the first half of next week problematic.

    • 26 Sep 2012
  • Capital structurers eye new market to fill bail-in requirements

    Debt capital markets bankers are working on new quasi-capital products to sit between senior unsecured and tier two debt, intended to protect senior bondholders from losses in a resolution or recovery scenario.

    • 25 Sep 2012
  • Erste tier two trades down in jittery secondary market

    Erste Group Bank’s $500m 10 non-call five year tier two bond traded below par on Wednesday as secondary markets continued several days of widening. But bankers said the deal went well despite the poor aftermarket performance — although most said the planned follow-up tranche in euros might have to wait.

    • 25 Sep 2012
  • Erste set to price $500m of tier two

    Austria’s Erste Group Bank is set to price $500m of tier two debt at 6.375% on Tuesday, having kept books open overnight to allow both European and Asian accounts to place orders.

    • 24 Sep 2012
  • Scor tops up Swiss hybrid

    French reinsurer Scor increased its recently issued hybrid security by Sfr65m on Monday, bringing the total size of the issue to Sfr315m ($337m).

    • 24 Sep 2012
  • Russian Standard Bank to roadshow lower tier two

    Russian Standard Bank (RSB) has mandated Goldman Sachs, UBS and VTB for a four-day roadshow with a view to issuing a subordinated dollar deal.

    • 24 Sep 2012
  • JP Morgan cuts Spain cap gap estimates

    As the market prepares itself for official figures on the capital deficit at Spain’s banks, JP Morgan analysts have revised down their estimates on how much equity the country’s lenders need. The bank calculated on Monday that Spain’s banking sector would need €56bn of capital, some 8% less than the analysts’ earlier estimates.

    • 24 Sep 2012
  • KEB reopens three year bonds for Korean banks

    Korea Exchange Bank reopened the three year curve for Korean lenders in the international bond market, raising $300m — and pulling off a record coupon after generating around $4bn of demand.

    • 23 Sep 2012
  • Citic pays up for lower tier two comeback

    Hong Kong'S Citic Bank International raised $300m from a lower tier two bond last week, becoming the third Asian bank to issue old-style subordinated debt this month as the region’s lenders try to beat impending Basel III rules.

    • 23 Sep 2012
  • Erste hits Asia and Europe for dollars, euro tranche may follow

    Erste Group Bank became the latest in a string of financial institutions to tap demand among Asian retail and private banking clients on Monday, opening books on a dollar-denominated lower tier two deal with initial pricing thoughts in the mid to high 6% area. A euro transaction is also on the table, in the wake of investor meetings in the region last week.

    • 23 Sep 2012
  • ING heralds dollar return, no deluge expected

    ING tested the depth of US investor appetite for European banking paper in a lively week for dollar issuance from the banking sector. The A2/A+ rated Dutch bank tapped the market for $2bn in a two part offering of three year fixed and floating rate paper via Citigroup, ING, JP Morgan and Morgan Stanley.

    • 20 Sep 2012
  • Maybank pays up over peers for tier two

    Malayan Banking Corp raised $800m to bolster its capital on its return to the global bond market last week. The deal offered a yield pick-up of more than 30bp against its higher-rated Singaporean peers.

    • 20 Sep 2012
  • Erste moves first as big week expected in Asia

    Austria’s Erste Group Bank on Friday made an early start on what is shaping up to be a busy week for Asian-targeted subordinated debt, unveiling the structure of a 10 non-call five year tier two instrument which it plans to sell next week.

    • 20 Sep 2012
  • Dollar tier two run continues as Erste finishes roadshow

    After another busy week for dollar denominated tier two supply, with Alfa Bank, Citic Bank and Nordea issuing, the run of deals is set to continue as Erste Group wraps up its roadshow.

    • 20 Sep 2012
  • EBA calls for more resources to work towards banking union, consumer protection

    Andrea Enria, chair of the European Banking Authority, called this week for more resources to formulate a banking union framework and to work on consumer protection.

    • 19 Sep 2012
  • Basel reveals gaping CET1 hole at biggest banks

    The world’s biggest banks need around €374bn of common equity tier one (CET1) capital to avoid restrictions on payouts under a fully-loaded Basel III framework, according to a survey by the global banking regulator published on Thursday.

    • 19 Sep 2012
  • Nordea breaks Asian trend, targets US accounts with tier two

    Nordea joined the run of banks issuing tier two on Monday, but veered away from the trend to target Asian retail accounts, instead selling the deal to US investors.

    • 17 Sep 2012
  • Banesto re-opens Spain, Banco Sabadell follows

    As many as seven euro denominated covered bond deals were mandated and priced this week, taking advantage of the constructive mood that followed the European Central Bank’s announcement last week that it would support peripheral sovereign debt markets.

    • 13 Sep 2012
  • Scor rides Swiss franc wave to print Sfr250m hybrid

    Reinsurance firm Scor printed its second Swiss franc hybrid on Monday — a Sfr250m ($264.4m) perpetual non-call 5.8 year — to capitalise on a buoyant post-summer Swiss franc market.

    • 13 Sep 2012
  • Julius Bär prints ‘aggressive’ Sfr tier 1 hybrid

    Julius Bär managed to tap the Swiss franc market for Sfr250m ($265m) on Tuesday with its perpetual non-call 5-1/2 tier one transaction, despite a structure that bankers said was aggressive.

    • 13 Sep 2012
  • Makit Data 1272

    • 13 Sep 2012
  • Danske’s tier two keeps Reg S market open to Europe

    A strong aftermarket performance on Danske Bank’s unusually structured tier two transaction this week is set to keep the market open for European borrowers selling capital in Reg S dollar format.

    • 13 Sep 2012
  • Danske pricing screams tighter as books top $6.5bn

    Investors have placed more than $6.5bn of orders for Danske Bank’s tier two transaction, driving leads to ratchet in pricing on a deal that has highlighted the strength of the Asian dollar bid for European bank capital.

    • 12 Sep 2012
  • Julius Bär prints ‘aggressive’ Sfr250m tier one hybrid

    Julius Bär managed to tap the Swiss franc market for Sfr250m ($265m) on Tuesday with its perpetual non-call 5-1/2 tier one transaction, despite a structure that bankers said was aggressive.

    • 11 Sep 2012
  • Banesto targets prefs for buyback

    Banco Español de Crédito (Banesto) is offering to buy back two preferred securities at deep discounts to par in a bid to improve its capital structure.

    • 11 Sep 2012
  • Dankse, Erste look to tier two and senior sits out

    Danske Bank and Erste Group moved ahead in the tier two market on Wednesday, opening books and mandating deals respectively, into a rallying market. Banks stayed away from senior unsecured, however, as investors digested a €500m print from Italy’s Monte dei Paschi di Siena on Tuesday.

    • 11 Sep 2012
  • Books already covered for 'aggressive' Julius Bär hybrid

    Lead managers Credit Suisse, Julius Bär and Zürcher Kantonalbank are set to close books for Julius Bär’s Swiss franc perpetual non-call 5-1/2 year tier one transaction at 2.30pm Zurich time today. With no cap on the transaction and a strong reception, the deal could well end up bigger than the initial target of Sfr200m.

    • 10 Sep 2012
  • Scor prints Sfr250m Swiss hybrid

    Reinsurance firm Scor printed its second Swiss franc hybrid on Monday ― a Sfr250m ($264.4m) perpetual non-call 5.8 year ― to capitalise on a buoyant post-summer Swiss franc market.

    • 10 Sep 2012
  • Julius Bär launches perpetual tier one

    Lead managers Credit Suisse, Julius Bär and Zürcher Kantonalbank have opened books on Julius Bär’s perpetual non-call 5-1/2 year tier one transaction on Monday morning.

    • 09 Sep 2012
  • Scor returns with second Swissie hybrid

    Reinsurance firm Scor launched its second ever Swiss franc hybrid on Monday. Lead managers BNP Paribas and UBS are set to price the perpetual non-call 5.8 year in the afternoon.

    • 09 Sep 2012
  • Private banks support ABN, rally bodes well for Danske and Raiffeisen

    ABN Amro achieved its objective of targeting Asian private bank investors for its dollar Reg S tier two deal, which closed on Thursday. The week’s new issues were all performing well as the market screamed tighter following European Central Bank president Mario Draghi’s promise to back up struggling sovereigns with bond purchases.

    • 06 Sep 2012
  • Unmodified Dutch auction hits sub ratings of Sabadell

    Standard & Poor’s this week downgraded Banco Sabadell’s hybrid and subordinated debt after the issuer announced a liability management exercise that emulated a controversial recent buyback from Santander.

    • 06 Sep 2012
  • Rabo, SEB fire off tier two trades as banks lose their patience over capital regs

    Fed up with waiting for clarity over capital requirements and under increasing pressure from bondholders, European banks this week opened the floodgates for subordinated debt issuance, with three institutions launching tier two deals and more gearing up to print, writes Will Caiger-Smith.

    • 06 Sep 2012
  • Markit Data 1271

    • 06 Sep 2012
  • Julius Bär plans Swiss hybrid issue

    Julius Bär has mandated Credit Suisse, Julius Bär and Zürcher Kantonalbank to organise investor meetings in Switzerland for a potential Swiss franc hybrid capital issue.

    • 06 Sep 2012
  • Dollar FIG ploughs ahead as banks, insurers return en masse after Labor Day

    Banks and insurance companies featured heavily among the barrage of high grade issuers tapping the US bond market this week.

    • 06 Sep 2012
  • SEB steps up to the plate as tier two flies

    Extended uncertainty over new capital regulations, as well as an almost empty tier two bucket due to a deal due to be called at the end of September, pushed Skandinaviska Enskilda Banken into the tier two market on Wednesday, EuroWeek understands. As with ABN Amro’s dollar denominated deal, SEB’s 10 non-call five year deal attracted strong demand, and more tier twos are set to follow.

    • 05 Sep 2012
  • OCBC pulls off $1bn old-style capital boost

    Oversea-Chinese Banking Corp (OCBC) raised $1bn from a lower tier two issue on Tuesday, the Singaporean lender’s second visit to the dollar bond market this year.

    • 05 Sep 2012
  • Rabo opens post-summer tier two rush with dual tranche deal

    The subordinated debt market has opened in earnest, with two deals in the market on Wednesday and another set to roadshow. Rabobank brought the first of the wave of tier two transactions on Tuesday, and bankers expect more to come as financial institutions look to bolster their capital positions — even in the absence of certainty around regulatory capital requirements.

    • 04 Sep 2012
  • SEB hits euros as ABN jumps the gun in dollar tier two

    Investors stampeded into tier two trades from Skandinaviska Enskilda Banken and ABN Amro on Wednesday morning, as the two banks slipped into the subordinated debt market ahead of more expected supply.

    • 04 Sep 2012
  • Danske aims to please S&P with long tier two

    Danske Bank is targeting ratings agency credit as well as regulatory capital as it roadshows a potential long dollar denominated tier two security.

    • 03 Sep 2012
  • Rabo hits tier two window with CMD-lite docs

    Rabobank has chosen a new way to reference forthcoming bail-in regulation in the rapidly evolving tier two bank capital market. The Dutch bank has mentioned loss-absorbency regulations in the risk factors section of its dual tranche tier two deal, launched on Tuesday, as well as alluding to them — although not explicitly mentioning them — in the terms and conditions.

    • 03 Sep 2012
  • Julius Bär mandates for Swissie hybrid roadshow

    Julius Bär has mandated Credit Suisse, Julius Bär and Zürcher Kantonalbank to organise investor meetings in Switzerland for a potential Swiss franc hybrid capital issue.

    • 02 Sep 2012
  • Banco Sabadell emulates Santander with unmodified Dutch auction

    Spain’s Banco Sabadell is offering to buy back up to €225m of subordinated debt and preferred securities in a liability management exercise which carries a similar — but more investor friendly —method as Santander’s recent deal.

    • 02 Sep 2012
  • Rabo preps tier two dual trancher

    Rabobank is holding an investor call on Monday with a view to launching a dual tranche euro and sterling tier two deal as early as Tuesday.

    • 02 Sep 2012