Regulatory Capital - All Articles

  • Thumbs up for BBVA as AT1 tightens

    BBVA’s $1.5bn additional tier one perpetual bond tightened in secondary trading on Wednesday, having been priced on Tuesday afternoon at 9%. The majority of the deal was allocated to European institutional accounts, proving that traditional investors are developing a taste for junior debt.

    • 30 Apr 2013
  • BBVA AT1 books bulge as institutional buyers pledge support

    New-style bank capital received a ringing endorsement from institutional investors on Tuesday as accounts rushed to place orders for BBVA’s contingent convertible trade, the first CRD-compliant additional tier one capital bond from a European borrower since the new regulations were finally agreed in March.

    • 29 Apr 2013
  • Complex BBVA AT1 debut divides opinion

    BBVA’s bold move to get out ahead of the pack with its new CRD-compliant additional tier one security has raised hackles in the bond market, with some bankers claiming that the deal’s complex structure is not in the spirit of new regulations and creates a complex precedent for the nascent market. The deal could hit the market as soon as Tuesday.

    • 28 Apr 2013
  • Strong exchange participation in insurer La Mondiale’s three-way

    French insurer La Mondiale has closed a combined tender offer and exchange for holders of its €400m fixed to floating rate perp, buying back just over €17m and switching €331.7m into a new bond that will yield 6.75%.

    • 25 Apr 2013
  • Markit Data 1302

    • 25 Apr 2013
  • Raiffeisen success on punchy perp

    Raiffeisen Schweiz sold its debut Basel III compliant perpetual bond last week, following a lengthy roadshow and a week-long bookbuild. The size of the deal topped the issuer’s expectations while pricing at the tight end of guidance.

    • 25 Apr 2013
  • Lloyds and RBS lead way as banks look for capital issuance flexibility

    Two UK banks are seeking shareholder approval for resolutions at their annual general meetings that should open the way for new contingent capital issuance. The moves could add to the Coco issuance pipeline in the wake of the Bank of England’s announcement last month that UK lenders need to raise £25bn of capital.

    • 25 Apr 2013
  • Alpha Bank targets capital in tender offer

    Greek lender Alpha Bank is targeting €316m of outstanding tier one and tier two securities in a tender offer as part of a range of proposals to strengthen the bank’s core tier one capital base.

    • 25 Apr 2013
  • UniCredit success offers new hope as BBVA mandates AT1

    UniCredit cashed in on Italy’s improving political situation and investors’ hunger for yield this week, blazing a trail for southern European banks with a well received $750m subordinated bond — the first pure tier two print from a peripheral European bank borrower since Bank of Ireland sold a €250m trade in December 2012.

    • 25 Apr 2013
  • Tax hit keeps Asia, Switzerland out of UniCredit Reg S debut

    A hefty withholding tax on Italian paper for private bank investors in Switzerland and Hong Kong meant that UniCredit relied on support from European institutional investors for its debut Reg S subordinated bond, which was trading around re-offer on Thursday morning.

    • 24 Apr 2013
  • UniCredit looks east with Reg S dollar debut

    UniCredit on Wednesday provided the first tier two deal from a bank borrower since January, gathering over $3bn of orders for a 10 year non-call five trade, the first time it has accessed US dollars in the Reg S format.

    • 23 Apr 2013
  • Supply subdued in senior and capital as issuers sit tight

    Reduced funding needs are keeping a lid on senior unsecured issuance, while uncertainty around grandfathering rules for old style tier two is preventing FIG borrowers from tapping the subordinated debt market, bankers told EuroWeek Bank Finance on Tuesday.

    • 22 Apr 2013
  • Strong exchange participation in La Mondiale three-way

    French insurer La Mondiale has closed a combined tender offer and exchange for holders of its €400m fixed to floating rate perp, buying back just over €17m and switching €331.7m into a new bond that will yield 6.75%.

    • 22 Apr 2013
  • Banks build in capital issuance flexibility

    Two UK banks are seeking shareholder approval for resolutions at their annual general meetings that should open the way for new contingent capital issuance. The moves could add to the Coco issuance pipeline in the wake of the Bank of England’s announcement last month that UK lenders need to raise £25bn of capital.

    • 21 Apr 2013
  • Raiffeisen sees success on punchy Swiss perp

    Raiffeisen Schweiz sold its debut Basel III compliant perpetual bond on Friday afternoon, following a lengthy period of roadshowing and a week-long bookbuilding process. The size of the deal topped the issuer’s expectations while pricing at the tight end of guidance.

    • 21 Apr 2013
  • Alpha Bank targets capital in tender offer

    Greek lender Alpha Bank is targeting €316m of outstanding tier one and tier two securities in a tender offer as part of a range of proposals to strengthen the bank’s core tier one capital base.

    • 21 Apr 2013
  • La Mondiale flies on first trip to Asia

    Lead managers on La Mondiale’s $600m perpetual non-call six were able to accelerate pricing this week after gathering €4.6bn of orders, with more than half the print snapped up by Asian accounts that were seeing the name for the first time.

    • 18 Apr 2013
  • Citi in €600m LM exercise

    Citigroup has invited holders of just over €2bn of its fixed to floating rate callable subordinated notes to tender their bonds for repurchase.

    • 18 Apr 2013
  • Markit Data 1301

    • 18 Apr 2013
  • Bupa shoots quick-fire bullet through Scottish Widows

    Bupa Finance was back in capital for the first time in nearly a decade this week, with that rarity driving orders for its £500m 10 year tier two bullet transaction over £5bn in less than an hour.

    • 18 Apr 2013
  • Citi launches €600m sub buyback

    Citigroup has invited holders of just over €2bn of its fixed to floating rate callable subordinated notes to tender their bonds for repurchase.

    • 17 Apr 2013
  • Bupa rarity value drives quick-fire 10 year

    Bupa Finance took less than an hour to gather more than £5bn of orders for its £500m 10 year tier two transaction on Thursday morning.

    • 17 Apr 2013
  • La Mondiale closes early on first trip to Asia

    Lead managers for La Mondiale’s $600m perp non-call six were able to accelerate the pricing of the trade after gathering €4.6bn in orders, with more than half the print snapped up by Asian accounts that were seeing the name for the first time.

    • 16 Apr 2013
  • La Mondiale off to good start with Asian bid

    Orders for French life assurer La Mondiale’s dollar perpetual non-call six year bond had reached $3bn by mid-morning in London on Tuesday, helped by a strong start in Asia.

    • 15 Apr 2013
  • La Mondiale readies dollar perp, euro exchange

    La Mondiale released terms on a dollar perpetual non-call six subordinated transaction on Monday morning, but did not set any price guidance as it continued to seek feedback from investors. The French insurer is also planning an exchange offer for euro bondholders into a new 2044 note.

    • 14 Apr 2013
  • Scottish Widows cuts Lloyds funding cord, but was it cheap?

    Scottish Widows pulled in £7bn of orders for its £1.5bn tier two transaction this week, its first offering under its own name since 2005. The public return enabled the insurer’s owner, Lloyds Banking Group, to cancel £1.2bn of internal funding, but bankers away from the deal thought it came cheaply.

    • 11 Apr 2013
  • Barclays buys back $850m in Coco accompaniment

    Barclays has hit the reduced $850m cap early on its tender offer for two US dollar securities, which the bank launched along with its $1bn contingent capital trade last week.

    • 11 Apr 2013
  • Markit Data 1300

    • 11 Apr 2013
  • Scottish Widows cuts Lloyds funding cord

    Scottish Widows’ £1.5bn tier two transaction has booked a capital gain for Lloyds Banking Group, as the deal has cancelled some £1.2bn of internal funding between the insurer and its parent. BUPA Finance is set to follow the well-received deal, after it mandated banks for a capital roadshow next week.

    • 09 Apr 2013
  • Scottish Widows hits sterling for six with bullet structure

    Scottish Widows found £6bn of demand for the first sterling subordinated bond of the year on Tuesday. The borrower went for a bullet structure on a 10 year and 30 year tranche.

    • 08 Apr 2013
  • Barclays buys back $850m in Coco accompaniment

    Barclays has hit the reduced $850m cap early on its tender offer for two US dollar securities, which the bank launched along with its $1bn contingent capital trade last week.

    • 08 Apr 2013
  • Scottish Widows, La Mondiale set to join growing sub pipeline

    Scottish Widows has begun a three day roadshow for a potential sterling denominated subordinated bond. If the deal emerges, it would be the first public benchmark in that asset class and currency so far this year.

    • 04 Apr 2013
  • Markit Data 1299

    • 04 Apr 2013
  • Barclays wraps up $1bn Coco, rivals slam timing

    Barclays put on a brave face this week after enduring heavy market criticism of the way it had executed its shiny new contingent capital trade. The deal traded up in the secondary market, easing fears that it might destabilise the nascent Coco market — but market participants said there were still lessons to be learned from the way it had been conducted.

    • 04 Apr 2013
  • Barclays Coco trades up as buyback cap reduced and new bonds targeted

    Barclays’ new $1bn contingent capital bond traded up in the secondary market on Thursday, having been priced on Wednesday afternoon in the US, following a heavily criticised execution process. The borrower also reduced the cap on its US dollar buyback — an operation linked to the new deal — by $150m after getting reverse enquiry for a buyback on three other outstanding bonds.

    • 03 Apr 2013
  • Scottish Widows hits the road for sterling sub

    Scottish Widows has begun a three day roadshow for a potential sterling denominated subordinated bond. If the deal emerges, it would be the first public benchmark in that asset class and currency so far this year.

    • 03 Apr 2013
  • Coco confusion as Barclays execution stutters

    FIG market participants were bemused on Wednesday as Barclays’ much lauded contingent capital trade fell a little flat, with some blaming an execution process that they described as shambolic. Some suggested the bank had tripped over itself in the rush to be the first into the market after the Bank of England revealed a £25bn capital hole at UK banks last week, although Barclays said the trade was opportunistic.

    • 02 Apr 2013
  • Sub takes centre stage as senior outlook muted

    Subordinated debt is expected to dominate the issuance pipeline over the coming weeks, as borrowers across the board look to bolster their capital ratios as the capital requirements directive (CRD) package moves towards official publication. Senior unsecured, meanwhile, is expected to be less of focus — although the market could throw up some opportunistic issuance.

    • 01 Apr 2013
  • Scottish Widows opens up sterling sub

    Scottish Widows is set to bring the first sterling benchmark trade of the year in subordinated debt, after mandating leads for a UK roadshow.

    • 01 Apr 2013