Regulatory Capital - All Articles

  • Achmea EUR750m 4.25% PNC10 tier two

    • 29 Jan 2015
  • Issuers shun sub market despite Achmea’s barnstormer

    Achmea shrugged off a weak credit market on Wednesday to draw a bumper book for its first subordinated deal since 2013, pricing a perpetual deal with a skinny new issue premium. However, the Dutch insurer’s success was insufficient to lure other issuers to sell capital trades of their own later in the week.

    • 29 Jan 2015
  • Vakifbank prints first Turkish Basel III compliant tier two bond

    Vakifbank priced the first ever Basel III compliant tier two bond on Monday, a $500m 10 year non-call five. But though bankers estimated that the bond paid around 115bp-116bp over its old style tier two bullet 2022s, they said it was difficult to strip out the cost of the addition of point of non-viability features.

    • 29 Jan 2015
  • TLAC takes shape as HK has second consultation

    Hong Kong has published its second consultation paper (CP2) on a resolution regime for financial institutions, as it readies itself for a new set of capital requirements – Total Loss Absorbing Capacity (TLAC). Market participants expect bond volumes to go up as banks prepare for the new regime, although for that to happen, the government will need to come up with answers to some tough questions, writes Rev Hui.

    • 29 Jan 2015
  • More sub debt set to hit screens after Achmea print

    A weaker credit market on Wednesday failed to dent demand for a perpetual deal from Dutch insurer Achmea, with the issuer commanding a large order book. Subordinated supply could continue tomorrow, with Italy’s SACE concluding a roadshow for a hybrid deal today. Barclays, Citi, Deutsche Bank, HSBC and UniCredit organised the roadshow for the issuer.

    • 28 Jan 2015
  • Vakifbank prints first Turkish Basel III tier two, but PONV structure cost still unclear

    Vakifbank priced the first ever Basel III compliant tier two bond on Monday, a $500m 10 year non-call five. But though bankers estimated that the bond paid around 115bp-116bp over its old style tier two bullet 2022s, they said it was difficult to strip out the cost of the addition of point of non-viability features.

    • 27 Jan 2015
  • BPCE finds new audience with tier two Samurai

    French lender BPCE sold the second ever Basel III compliant subordinated Samurai deal on Friday, pricing a triple tranche ¥48.3bn ($409.8m) trade. The new format allowed the issuer to diversify its Japanese following, drawing in many investors which do not traditionally participate in senior unsecured transactions.

    • 26 Jan 2015
  • ANZ cost-saving CNH B3 bond to inspire non-Chinese FIGs to follow suit

    Australia and New Zealand Bank priced the first offshore renminbi-denominated Basel III bond from a non-Chinese bank on January 21. Not only did the Australian borrower achieve the size and pricing levels it was aiming for, but it also proved that funding in CNH can be cheaper than dollars, potentially triggering more non-Chinese lenders to follow suit, writes Narae Kim.

    • 22 Jan 2015
  • BPCE follows Rabo with Samurai sub deal

    France’s BPCE opened order books on Monday for the second ever Basel III compliant Samurai deal, opting for a triple tranche structure. Only Rabobank has previously sold a similar trade, enjoying healthy arbitrage versus its cost of selling tier two paper in both dollars and euros.

    • 19 Jan 2015
  • Rabo AT1 debut may herald a more modest market in 2015

    Rabobank’s inaugural additional tier one marked not only the first such deal from a Dutch issuer, but the first AT1 deal of the year. Though the deal was priced into a market full of uncertainty, its sturdy reception, if less ecstatic than previous trades, suggests that investors are approaching the asset class with more sobriety than in 2014.

    • 15 Jan 2015
  • Rabo surprises with generous AT1 debut

    Rabobank opened the additional tier one market for 2015 on Thursday, selling its debut in the format. The much anticipated deal was expected to sell well as a result of Rabobank’s high credit quality, but some bankers away from the deal were surprised to see the bonds sold at what was judged to be a generous level.

    • 15 Jan 2015
  • ANZ seeks landmark Basel III offshore RMB bond

    Australia and New Zealand Bank (ANZ) has mandated five banks to run meetings with fixed investors for what looks to be the first Basel III bond from a non-Chinese bank in the offshore renminbi market.

    • 15 Jan 2015
  • Crédit Agricole Assurances EUR1bn 4.25% perpetual tier two

    • 08 Jan 2015
  • Capital stays in focus with 2015 volumes set to grow

    Another busy year for bank capital is likely for 2015 according to analysts, with volumes for tier one and tier two debt expected to improve on last year’s record showing for bank capital.

    • 08 Jan 2015
  • CredAg unit goes for last-minute Solvency II grandfathering

    In the first subordinated FIG deal of the year, Crédit Agricole Assurances, the wholly owned insurance subsidiary of Crédit Agricole SA, launched and priced an eleventh hour attempt at getting grandfathering for capital deals that aren’t compliant with new Solvency II capital rules.

    • 08 Jan 2015
  • CredAg unit goes for last-minute Solvency II grandfathering

    In the first subordinated FIG deal of the year, Crédit Agricole Assurances, the wholly owned insurance subsidiary of Crédit Agricole SA, has launched an eleventh hour attempt at getting grandfathering for hybrid capital deals that aren’t compliant with new Solvency II capital rules.

    • 08 Jan 2015
  • UKAR tenders NRAM and B&B subs

    Holders of subordinated debt issued from nationalised lenders NRAM (Northern Rock Asset Management, the nationalised 'bad bank' remains of Northern Rock plc) and Bradford & Bingley tendered the majority of more than £210m in outstanding bonds for as much as 206% of the outstanding principal amount.

    • 06 Jan 2015
  • RSB fails to secure support for capital update

    Russian Standard Bank has withdrawn its proposed tier two bond update after failing to secure the consent of holders of nearly half of the bond before the December 16 deadline. The offer looked to be struggling as early as mid-December when the bank increased the late consent fee from 1% to 5% to switch to the new notes.

    • 06 Jan 2015
  • Capital volumes set to keep growing after record 2014

    Another busy year for bank capital is likely for 2015 according to syndicate bankers and analysts, with volumes for tier one and tier two debt expected to improve on last year’s record showing for bank capital.

    • 05 Jan 2015