Regulatory Capital - All Articles

  • EFG PONV success as investors rush to liability management exercise

    Investors have flocked to EFG International’s buyback of a hybrid tier one note, tendering 91% of the securities to the offer at the early deadline. The strong take-up means the bank is likely to be able to insert point of non-viability loss absorbency language into the rump, as well as generating core tier one capital.

    • 21 Dec 2012
  • Övag hits 70.5% participation rate in tier two buyback

    Österreichische Volksbanken-Aktiengesellschaft bought back €211.6m of tier two debt in a cash tender offer intended to create core tier one capital and offer liquidity to investors.

    • 20 Dec 2012
  • EBA supports use of bail-in bonds

    The European Banking Authority has partially supported the Liikanen report’s recommendation that banks should hold specifically designated bail-in instruments.

    • 20 Dec 2012
  • CRD delays push implementation back to second half

    Europe’s new capital rules could come into force in July or September 2013, capital structuring specialists say, after negotiations planned for this week were pushed back to January.

    • 19 Dec 2012
  • Investors tender 94% of Nationwide PIBS

    Nationwide Building Society has hit a strong take-up rate on its buyback of a £350m permanent interest bearing share.

    • 18 Dec 2012
  • Co-op sells bullet tier two through exchange

    The Co-operative Bank is set to issue a £235m tier two note after investors dived into its exchange offer on two older securities.

    • 18 Dec 2012
  • Investors take chance to swap into Nova Kreditna senior

    Investors have shown a clear preference for exchanging out of tier one notes into a new Nova Kreditna Banka Maribor senior unsecured bond, as the Slovenian bank looks to improve its core tier one capital ratio.

    • 18 Dec 2012
  • IIF blasts insurance SIFI proposals

    The Institute of International Finance has criticised proposals to deal with global systemically important financial institutions, saying they carry a “high risk of detrimental unintended consequences”.

    • 17 Dec 2012
  • BPE, LeasePlan tie up buybacks as Citi, Achmea release preliminary results

    Banco Popular Español (BPE) this week bought back €130m of tier one and tier two capital instruments in a liability management exercise that Standard & Poor’s deemed "distressed".

    • 14 Dec 2012
  • Worries rise over contractual loss absorbency for tier two as CRD IV nears finish line

    Expectations for the shape and cost of tier two issuance in the near term were turned on their head this week, as policymakers came close to finalising the new rules on bank capital that will translate Basel III into European law, writes Katie Llanos-Small.

    • 14 Dec 2012
  • EFG gets in shape for Basel III with perp buyback

    Swiss private bank EFG International has opened a buyback of a perpetual instrument as it prepares for Basel III rules coming into effect next year.

    • 14 Dec 2012
  • BoI returns to sub debt with €250m tier two

    Bank of Ireland put its bondholder burden sharing exercises behind it on Wednesday when it returned to market with a strongly subscribed subordinated tier two issue that rallied sharply after pricing.

    • 14 Dec 2012
  • Second chance for Cocos as KBC unveils plans for Q1 print

    In a sign that another jurisdiction is willing to give contingent capital a second chance, KBC unveiled plans this week to sell a non-dilutive Coco early next year.

    • 14 Dec 2012
  • BoI returns to sub debt with €250m tier two

    Bank of Ireland put its bondholder burden sharing exercises behind it on Wednesday when it returned to market with a strongly subscribed subordinated tier two issue that rallied sharply after pricing.

    • 13 Dec 2012
  • Interim loss-taking proposals threaten tier two costs, say bankers

    Stop gap measures for bank capital being hammered out in Brussels this week could push up the price of tier two issuance for banks as soon as next year, capital structuring specialists said.

    • 12 Dec 2012
  • EFG buys back perp in Basel III prep

    Swiss private bank EFG International has opened a buyback of a perpetual instrument as it prepares for Basel III rules coming into effect next year.

    • 12 Dec 2012
  • Nationwide, Övag launch tenders as Citi extends dollar buyback

    Nationwide Building Society and Övag opened new offers to buy back subordinated debt on Monday, as Citi extended the early tender deadline for its dollar denominated cash tender offer.

    • 11 Dec 2012
  • Hold-co level resolution could shift UK banks’ funding structure

    A report published by the Bank of England and the US Federal Deposit Insurance Corporation which proposes that bank resolution measures be applied on a “top-down” basis could alter how UK financial institutions raise capital and funding, a DCM banker has said.

    • 10 Dec 2012
  • KBC Coco plan catches market by surprise

    KBC plans to sell a non-dilutive contingent capital instrument early next year as part of a €2bn capital raise, leaving market participants wondering about the form the security will take.

    • 10 Dec 2012
  • Deutsche Bank, A&O differ on deleveraging

    Deutsche Bank took a bright view on European banks this week, saying that deleveraging would hit an inflection point in 2014. But the optimism clashed with a report from law firm Allen & Overy, which said credit was being squeezed by new regulations.

    • 07 Dec 2012
  • S&P labels BPE sub and prefs buyback ‘distressed’

    Banco Popular Español is offering to buy €702.7m of its tier one and tier two instruments at a small premium to market value, in a transaction that Standard & Poor’s has branded a "distressed exchange".

    • 07 Dec 2012
  • HAA offers premium over agencies

    Government-owned Austrian lender Hypo Alpe Adria International Bank printed €1bn of 10 year bullet tier two capital, guaranteed by the state, on Thursday.

    • 07 Dec 2012
  • Markit Data 1284

    • 07 Dec 2012
  • Co-op joins tier two rush with LM

    Co-operative Bank has joined the rush for new tier two capital instruments this week — but through a liability management exercise. It is offering to switch £300m of outstanding securities into a new bullet tier two.

    • 07 Dec 2012
  • Banking union costs could hit €80bn, says Barclays

    Banking union plans could be a "meaningful drag" on banks’ earnings, with uniform deposit guarantee schemes and bank resolution funds costing up to €80bn to put in place, Barclays analysts said on Thursday.

    • 07 Dec 2012
  • UniCredit, Generali push forward in sub and senior as investors change views

    UniCredit and Assicurazioni Generali this week proved that Italian credits are beginning to decouple from the European periphery, with Generali building a €9bn order book for its well-flagged subordinated bond and UniCredit hitting the market two days in a row — first re-opening its recent tier two bond and then printing a five year senior deal that came flat to its secondary curve, writes Will Caiger-Smith.

    • 07 Dec 2012
  • S&P brands BPE sub buyback a ‘distressed exchange’

    Standard & Poor’s has labelled Banco Popular Español’s buyback of subordinated debt and preference shares as a distressed exchange, citing not just the low buyback price but also the broader context of Spanish bank capital raising.

    • 06 Dec 2012
  • Hypo Alpe Adria brings GG tier two

    Government-owned Austrian lender Hypo Alpe Adria International Bank was set to print €1bn of 10 year bullet tier two capital, guaranteed by the state, on Thursday.

    • 06 Dec 2012
  • Strong UK, funds support helps Generali boost capital

    Italian insurer Assicurazioni Generali on Wednesday bolstered its capital with a €1.25bn 30 year non-call 10 subordinated issue, in a deal that represents new — rather than replacement — paper.

    • 06 Dec 2012
  • Generali pulls in pricing after tier two demand passes €8bn

    Italian insurer Assicurazioni Generali is set to price a new 30 year non-call 10 subordinated bond flat to its curve. Generous initial pricing thoughts of 8.125% encouraged strong demand from the start of the execution process, with over 550 investors placing orders.

    • 05 Dec 2012
  • UniCredit adds €250m to tier two in tight tap

    UniCredit took advantage of a rally in its recent 2022 tier two issue on Monday to reopen the bond, adding €250m at 498bp over mid-swaps to take the overall deal size to €1.5bn.

    • 04 Dec 2012
  • Vakifbank to tap tier two, 10bp premium offered

    Vakifbank is increasing its $500m 6% lower tier two 2022s and has released price guidance of 5.5% yield area for the new issue, representing around a 10bp new issue premium to where the outstanding deal was trading before the tap announcement. No size has yet been set for the note.

    • 03 Dec 2012
  • UniCredit targets tight tier two tap as Generali prepares for launch

    UniCredit took advantage of tightening secondary market spreads on Monday, reopening its recent tier two bond with a minimal new issue premium. Meanwhile, Italian insurer Assicurazioni Generali was waiting for approval for its own tier two transaction, which is expected to launch this week.

    • 03 Dec 2012
  • A&O calls for regs re-think to restart credit flows

    Lawyers at Allen & Overy have warned that incoming financial regulations are squeezing banking activity and have called for policymakers to work towards freeing up “beneficial credit”.

    • 03 Dec 2012