Regulatory Capital - All Articles

  • Friends Life set for two day Asian bookbuild

    UK insurer Friends Life opened books on its perpetual non-call six dollar Reg S tier two bond on Wednesday, having spent the past two days on investor calls with accounts in Asia and Europe. Bankers thought the price was generous but fair, given that the issuer is new to the Asian private banking community.

    • 31 Oct 2012
  • BBVA retires €691.7m of LT2 debt

    BBVA is set to book an estimated capital gain of €107m after buying back €691.7m of lower tier two debt in a liability management exercise. This figure represents the repurchase of non-consent securities only, so the final amount, which will be revealed once bondholder syndicates have approved the repurchase of the two consent securities, is likely to be larger.

    • 30 Oct 2012
  • Friends Life follows the herd into Asian dollars

    UK life insurer Friends Life is set to print a dollar tier two capital issue this week. It will become the latest FIG issuer to tap the Asian private banking community, which has soaked up supply from several banks over the past three or four months and more recently, from fellow life assurers CNP Assurances and Nippon Life.

    • 29 Oct 2012
  • Rarity drives ‘fantastic’ response to Wing Lung LT2

    Hong Kong lender Wing Lung Bank raised $200m from its first foray into the international bond market last week. The lower tier two offering is expected to be one of the last old-style bank capital deals in Asia, which helped the bookrunners to build a $1.5bn order book.

    • 29 Oct 2012
  • Intesa call removal knocks tier two – could BNP Paribas follow?

    European tier two capital securities dropped by up to three points in price on Monday as investors digested Intesa Sanpaolo’s decision to remove the call options from the €2.6bn of tier two bonds it is targeting in a liability management exercise announced last Thursday.

    • 29 Oct 2012
  • YBS sweeps up in capital tender as LM outlook clouds over

    Yorkshire Building Society is set to buy back a large chunk of privately placed capital instruments in a liability management exercise to strengthen its capital base. BayernLB and Standard Chartered have also bought back subordinated debt this week — but bankers are divided over the LM pipeline for the rest of 2012.

    • 25 Oct 2012
  • Intesa looks to bolster CET1 with LT2 to senior exchange

    Intesa SanPaolo is offering investors a new five year senior bond in exchange for a targeted €2.5bn equivalent of lower tier two bonds in euro and sterling, all with imminent call dates. It suggested it would not call the targeted bonds because of market conditions.

    • 25 Oct 2012
  • UniCredit opens door for peripheral capital but candidates limited

    After more than a year without capital issuance from a peripheral European borrower, UniCredit dived confidently into the market this week, printing €1.25bn of tier two paper and gathering €4.5bn of orders from far and wide.

    • 25 Oct 2012
  • RBI exchange creates new tier two bond

    Raiffeisen Bank International is issuing €290m of new lower tier two paper, after investors tendered almost 50% of an old upper tier two bond in an exchange offer. The exercise will help minimise loss of capital treatment under Austrian regulation and saves RBI money on a new style tier two issue.

    • 25 Oct 2012
  • Intesa throws capital call option curveball

    Intesa Sanpaolo launched a liability management exercise with a twist on Thursday afternoon, offering investors in its tier two paper a new five year senior bond and removing the call options from the targeted notes so they would receive capital treatment under Basel III.

    • 25 Oct 2012
  • Markit Data 1278

    • 25 Oct 2012
  • Wing Lung eyes rare dollar bond to bolster capital base

    Wing Lung Bank wants to become the first Hong Kong lender to tap the dollar bond market this year, making a rare foray into subordinated debt. But bankers do not expect much more from the sector before the end of the year, and think the issuer will aim only for a modest size.

    • 25 Oct 2012
  • YBS sweeps up in capital tender

    Yorkshire Building Society is set to buy back a large chunk of privately placed capital instruments, having achieved an impressive take-up in a liability management exercise intended to strengthen its capital base. Elsewhere, BayernLB and Standard Chartered have also bought back subordinated debt.

    • 24 Oct 2012
  • RBI creates new tier two bond through exchange

    Raiffeisen Bank International is issuing €290m of new lower tier two paper, after investors tendered almost 50% of an old upper tier two bond in an exchange offer. The exercise will help minimise loss of capital treatment under Austrian regulation and saves the issuer money on a new style tier two issue.

    • 23 Oct 2012
  • Home and away support for UniCredit's tier two

    International buyers and domestic investors came out in force for UniCredit’s tier two bond on Monday, showing their support for the first peripheral Europe capital deal in over a year. The deal widened in secondary trading on Thursday against a softer market backdrop, but bankers were pleased with the deal’s diverse distribution.

    • 22 Oct 2012
  • Peripheral tier two returns as UniCredit opens books

    UniCredit became the first peripheral European borrower to tap the tier two market for over a year on Monday, opening books on a 10 year bullet after getting a strong response from European investors in a roadshow last week.

    • 21 Oct 2012
  • Markit Data 1277

    • 18 Oct 2012
  • Reform fatigue sets in as UK begins regs scrutiny

    The scale of the change that the UK’s Banking Reform Bill will force upon the country’s lenders was highlighted this week as US economist Paul Volcker questioned the sustainability of ring-fencing and the UK government clashed with the European Commission over bail-in regulation, leading senior industry figures such as HSBC’s Douglas Flint to complain of a regulatory overload, writes Will Caiger-Smith.

    • 18 Oct 2012
  • UniCredit tests European limits for tier two

    UniCredit met investors in Europe this week to drum up interest for a potential lower tier two bond, hoping to ride a wave of successful senior unsecured and covered bond prints over recent weeks. Bankers said that while the deal did not necessarily open the door for second tier peripheral European issuers in tier two, the Italian national champion’s appearance in the market underlined the strength of the rally in credit.

    • 18 Oct 2012
  • LeasePlan diversifies to dollars, US banks ride wave of demand

    LeasePlan debuted as a 144A issuer in the US market this week, finding investors hungry for novelty and yield. The Dutch borrower joined US national champions to take advantage of a wall of demand in the dollar market.

    • 18 Oct 2012
  • YBS sets sights on private deals in sub tender

    Yorkshire Building Society is using a modified Dutch auction to offer holders of three small, privately placed tier two bonds the chance to sell their notes back to the issuer, in a bid to boost the society’s capital base.

    • 18 Oct 2012
  • DZ drums up interest with Swiss subordinated

    DZ Bank saw strong investor interest on a Sfr100m five year tier two bullet on Wednesday afternoon. The 2% November 2017 paper attracted healthy investor interest — in spite of tighter pricing than where the bank would expect to borrow in euros — on the back of Swiss investors looking for a pick-up in yield.

    • 17 Oct 2012
  • YBS targets illiquid private placements in capital buyback

    Yorkshire Building Society is using a modified Dutch auction to offer holders of three small, privately placed tier two bonds the chance to sell their notes back to the issuer, in a bid to boost the society’s capital base.

    • 15 Oct 2012
  • Peripheral sub debt in focus as UniCredit mandates for tier two

    UniCredit is preparing to speak to European investors about a potential tier two transaction, in a move that could end the hiatus of subordinated debt issuance from peripheral banks.

    • 11 Oct 2012
  • Markit Data 1276

    • 11 Oct 2012
  • RBI gears up to call with tier two exchange

    Raiffeisen Bank International (RBI) has launched a sub debt exchange to avoid losing capital treatment under Basel III, and in the process is saving money on a new style tier two issue.

    • 11 Oct 2012
  • BBVA keeps optionality with unmodified Dutch auction on €2.9bn of tier two

    BBVA is offering investors the chance to get out of up to €2.9bn equivalent of outstanding euro, sterling and Japanese yen subordinated debt in a buyback using an unmodified Dutch auction, having simultaneously announced it will consider upcoming calls on an economic and regulatory basis.

    • 11 Oct 2012
  • Basel takes flexible approach for D-SIBs

    The Basel Committee on Banking Supervision has taken a flexible approach to dealing with banks that are systemically important on a national level. The global bank standard setter unveiled a framework for domestic systemically important banks (D-SIBs) on October 11, saying that national regulators had some leeway for interpretation.

    • 11 Oct 2012
  • Asian bid here to stay as private banks flock to insurance T2

    Hong Kong and Singapore were the places to be for insurers this week, as private bank investors in the region once again proved their demand for higher yielding subordinated assets.

    • 11 Oct 2012
  • BayernLB targets Trups in buyback

    Bayerische Landesbank is set to repurchase up to $850m of trust preferred securities in a liability management exercise intended to strengthen its balance sheet.

    • 10 Oct 2012
  • UOB shows that old-style capital still in fashion

    United Overseas Bank returned to the subordinated bond market this week after nine years away, selling an old-style bank capital deal.

    • 10 Oct 2012
  • Nippon Life slashes guidance

    Nippon Life flexed its muscles on Thursday, tightening guidance on its 30 year non-call 10 dollar bond to almost 90bp inside the original guidance, after having taken around $20bn of orders since opening books on Wednesday.

    • 10 Oct 2012
  • Old-style capital is still in fashion, UOB shows

    United Overseas Bank returned to the subordinated bond market this week after nine years away, selling an old-style bank capital deal.

    • 10 Oct 2012
  • RBI tier two grows on retail demand

    Raiffeisen Bank International priced a Sfr250m 4.75% 10 year bullet tier two bond at 385bp over mid-swaps on Tuesday afternoon. The deal received good demand from Swiss investors, more than doubling the minimum target, with the spread on offer proving particularly attractive to retail buyers.

    • 09 Oct 2012
  • Solid CNP and Allianz sub deals trade up despite softer backdrop

    New issues from CNP Assurances and Allianz performed well in secondary trading on Wednesday, despite an uncertain backdrop which saw equities dive and credit indices widen. CNP found strong Asian support for its inaugural Reg S dollar bond, while Allianz’s transaction was dominated by European real money buyers.

    • 09 Oct 2012
  • Calls on the cards as RBI launches tier two exchange

    Raiffeisen Bank International is offering investors the chance to switch out of an upper tier two bond and into a new-style tier two note, having hinted that it may call the old paper at the end of October. Standard Chartered has also offered to buy back an upper tier two bond.

    • 09 Oct 2012
  • CNP gets 20x demand as Asia shows depth, Allianz taps European fan base

    French insurance firm CNP Assurances got a thumbs up from the Asian private banking and retail investor base on Tuesday, gathering around $6bn of orders from the region — in addition to $4bn from European buyers — for its inaugural dollar Reg S subordinated bond. Meanwhile, Germany’s Allianz tapped the euro market for a 30 non-call 10 deal.

    • 08 Oct 2012
  • Coupon on RBI Swissie piques retail interest

    Raiffeisen Bank International is set to close books on a 10 year bullet tier two trade in Swiss francs.

    • 08 Oct 2012
  • CNP Assurances aims for seven handle with low 8% IPTs

    French insurer CNP Assurances is fast-tracking the execution of its dollar Reg S perpetual subordinated bond, releasing initial pricing thoughts and taking indications of interest on Monday. The lead managers plan to start taking orders when the Asian market opens on Tuesday.

    • 07 Oct 2012
  • Markit Data 1275

    • 04 Oct 2012
  • Nippon Life casts international net for tier two, others hold back

    Japanese insurance firm Nippon Life will hit the road next week to explore a possible 144A and Reg S format tier two bond, speaking to investors in Asia, Europe and the US. After a subdued week in the FIG market, the roadshow could encourage other insurance issuers waiting in the wings, said bankers.

    • 04 Oct 2012
  • Nippon Life takes international approach for tier two

    Japanese insurance firm Nippon Life will hit the road next week with a view to bringing a 144A and Reg S format tier two bond. The issuer will look broadly for demand, speaking to investors in Asia, Europe and the US, in a series of meetings starting next Monday.

    • 03 Oct 2012
  • Not so temporary after all: EBA set to keep 9% capital ratio

    The European Banking Authority will not relax the 9% core capital ratio that it pushed lenders to reach this year. The Authority revealed the new stance on Wednesday night as it unveiled final results of the temporary crisis-fighting recapitalisation effort.

    • 03 Oct 2012
  • Senior and capital sidelined despite firm backdrop

    FIG issuers are choosing to bide their time in senior unsecured and tier two, staying out of the primary market despite supportive secondary trading and investor demand. Bankers said the market was more balanced than it was during the third quarter, but added that while issuers might have to pay slightly higher new issue premiums than during the recent rally, investors would still be receptive to new deals.

    • 02 Oct 2012
  • High yield drives demand for Swiss Life perpetual

    Swiss Life, Switzerland’s largest life insurance company, priced a Sfr300m perpetual hybrid on Monday afternoon.

    • 01 Oct 2012
  • Erste tier two tightens despite market uncertainty

    Erste Group Bank’s €500m follow-up to its dollar Reg S tier two of last week performed strongly in secondary trading on Tuesday, tightening by up to 20bp against Bunds despite an uncertain market backdrop.

    • 01 Oct 2012