Regulatory Capital - All Articles

  • Blowout UBS deal raises hopes of return to form for AT1

    Financial institutions bond bankers are hoping that the additional tier one market is back in fashion with investors, after UBS was able to attract a whopping $16bn of orders for a $2.5bn transaction this week.

    • 31 Jan 2019
  • UBS Group Funding USD2.5bn 7% PNC5 AT1

    • 31 Jan 2019
  • Bank capital goes green with latest Kookmin deal

    Asia’s sustainability market took a big step forward this week when Kookmin Bank priced a Basel III-compliant tier two bond with a sustainability label — the first of its kind in the region. Morgan Davis reports.

    • 31 Jan 2019
  • Fear seeps into Santander AT1s after bank restates call policy

    Additional tier ones issued by Banco Santander plunged in value on Wednesday, after the Spanish financial institution reiterated that it would only redeem capital securities at their first call dates if it was cost efficient to do so.

    • 30 Jan 2019
  • Kookmin grows bank capital with sustainable approach

    ‘Tier two’ and ‘sustainability’ are labels that have never previously been combined in Asia. At least not until this week, when Kookmin Bank raised $450m from a Basel III-compliant deal.

    • 29 Jan 2019
  • UBS targets first 144A sale in AT1, clocks up more than $10bn of orders

    UBS welcomed strong demand on Monday for its first ever additional tier one deal in Reg S/144A format, running up an order book of about $10.5bn mid-way through the sales process.

    • 28 Jan 2019
  • BOC loses debt syndicate head in Hong Kong

    Bank of China’s Hong Kong-based debt syndicate head Sebastian Ha is leaving the firm next month.

    • 28 Jan 2019
  • CNP eschews call option for tier two

    CNP Assurances came to the market on Friday with a tier two deal, using the bullet format like Assicurzioni Generali did earlier in the week. The issuer chose this structure to get a better price and more investor interest, but one research house suggested that a tier three trade would have made more sense.

    • 25 Jan 2019
  • Investors waltz back to edgier FIG deals

    Financial firms from southern Europe raised debt from the capital markets this week, suggesting a thaw in the frosty attitude towards the EU’s weakest lenders. The issuers were able to profit from other banks being in blackout and a feeling that valuations are now too low, writes Jasper Cox.

    • 24 Jan 2019
  • Assicurazioni Generali EUR500m 3.875% Jan 29 tier two

    • 24 Jan 2019
  • BCP pays high coupon in AT1 reopener

    Banco Comercial Português got away an additional tier one bond deal on Thursday, showing demand is present for a risky credit profile, but at a high level. The bond will suffer from higher than average coupon risk.

    • 24 Jan 2019
  • Metro’s trading update terrifies investors

    Metro Bank’s update to the market on Wednesday has led to speculation it will need to raise capital once more. It revealed slowing loan and deposit growth, weaker than expected profits, and a greater than expected rise in risk-weighted assets chewing up its capital ratio. The update came at a time when UK banks are pessimistic about raising capital.

    • 23 Jan 2019
  • Generali reopens Italian sub market

    Assicurazioni Generali was more than 10 times subscribed for its bullet tier two deal on Monday, the first public subordinated bond to be issued by an Italian financial institution in more than half a year. The deal likely benefitted from investors feeling more confident about both Italy and subordinated insurance debt.

    • 21 Jan 2019
  • CMB Wing Lung lands tight pricing for AT1

    CMB Wing Lung Bank, the Hong Kong-based subsidiary of China Merchants Bank, has printed the year's first Basel III-compliant additional tier one note from Asia, taking $400m from a deal that was priced well inside analysts’ view on fair value.

    • 18 Jan 2019
  • BNP cashes out S$250m from tier two return

    BNP Paribas made a comeback to the Singapore dollar bond market to shore up its capital, bringing the year’s first Basel III-compliant tier two outing in the currency.

    • 15 Jan 2019
  • Brexit untangling could boost HSBC over its discos

    The European Banking Authority is sceptical about HSBC’s decision to re-grant capital treatment to some legacy debt instruments last year, but it is unsure about the leverage it can exert over UK authorities in light of the country’s upcoming departure from the EU.

    • 14 Jan 2019
  • Early January bond volume ‘underwhelming’

    Dollar bond issuance in Asia appears to have got off to a strong start, with a rally both in the primary and secondary markets. But that is not enough for many DCM bankers in the region, who are hoping for a bigger upside.

    • 14 Jan 2019
  • Abanca gets ahead of Brexit vote with T2

    Abanca decided to bring its tier two bond to the market on Friday, giving the euro market its first bank capital deal of the year. It was able to reach investors before the UK parliament vote on Brexit threatens sentiment next week.

    • 11 Jan 2019
  • Shanghai Commercial adds to bank capital issuance

    Shanghai Commercial Bank followed Hong Kong’s Dah Sing Bank into the bond market on Thursday with a $300m Basel III-compliant tier two deal.

    • 11 Jan 2019
  • Updated: Dah Sing heralds bank capital supply rush

    Hong Kong’s Dah Sing Bank priced a popular $225m Basel III-compliant tier two deal this week, kicking off what is set to be a critical year for Asia’s bank capital market. Addison Gong reports.

    • 10 Jan 2019
  • Abanca spies window for capital reopening

    Spanish lender Abanca is set to market a tier two bond, seeing an opportunity to issue after several stronger market sessions. It hopes to prove that demand for sub-benchmark bank capital is still alive and kicking.

    • 09 Jan 2019
  • Libor cut-off raises the risk of AT1 extensions, says JP Morgan

    Analysts at JP Morgan believe that investors are underestimating the risk that banks will decide against calling their additional tier one instruments in the coming years, because of confusion around the reset rates that could apply past the scheduled end of Libor.

    • 09 Jan 2019
  • Banks fear being priced out of the market for MREL debt

    Around half of EU banks see pricing as a major constraint for issuing subordinated debt counting towards their minimum requirements for own funds and eligible liabilities (MREL), while analysts think funding costs will increase for capital instruments across the board, according to a survey released by the European Banking Authority this week.

    • 09 Jan 2019
  • Dah Sing kicks off critical year for Asian bank capital

    Hong Kong’s Dah Sing Bank priced a popular $225m Basel III-compliant tier two deal, starting the market on a strong note in a year where more than $24bn of capital bonds from Asia are coming up for call.

    • 09 Jan 2019
  • Italy gives Carige liquidity support, opens path to recap

    The Italian government has agreed to provide a guarantee for Banca Carige’s bonds, giving it a chance to shore up its liquidity position. The state has also put the option of a precautionary recapitalisation on the table.

    • 08 Jan 2019
  • HSH Nordbank bondholders file lawsuit

    Investors in some tier one instruments issued by HSH Nordbank are taking their complaints to court in Germany, claiming that the way in which the notes were written down and the coupon payments missed was improper.

    • 07 Jan 2019
  • ECB looks to unlock capital block for Carige

    It might be a new year but the same old problems are haunting the Italian banking sector. On Wednesday the European Central Bank took the unprecedented step of appointing administrators to run struggling Banca Carige. The supervisor hopes that the intervention will solve long-standing governance problems, but it may not be enough for the bank to pull off an equity raise and ensure its survival.

    • 03 Jan 2019
  • Investors face extended wait for fresh sub debt

    Poor market conditions at the start of 2019 could leave investors facing a long wait for new subordinated bank bond supply in euros, adding to a month without any issuance in the sector.

    • 03 Jan 2019
  • Will Europe regret stringing out the Carige debacle?

    The European Central Bank is giving Banca Carige yet more time to boost its capital. If the lender cannot turn itself around, authorities will regret dithering while the private sector walked away.

    • 03 Jan 2019
  • ECB takes charge of Carige

    The European Central Bank has seized control of Banca Carige after a majority of board members resigned. The new administrators include the old CEO and chair, originally proposed by the Malacalza family, as well as a lawyer with experience of merging financial entities.

    • 02 Jan 2019