Regulatory Capital All Articles

  • Barclays attracts £7.5bn of orders for blowout sterling AT1

    Barclays has become the second financial institution to issue an additional tier one (AT1) in the sterling market this week, supported by a quiet backdrop in UK politics and healthy investor demand. The issuer was 7.5 times subscribed for its £1bn deal.

    • 18 Sep 2019
  • Nationwide’s flexible AT1 call option seen as ‘welcome development’

    Nationwide Building Society raised £600m of additional tier one (AT1) capital this week with the help of strong support from sterling investors, some of whom were pleased to see that the UK lender had developed a more efficient method for calling and refinancing deals in the asset class.

    • 18 Sep 2019
  • Nationwide innovates in blowout AT1 return

    Nationwide Building Society was more than six times subscribed on its return to the additional tier one (AT1) market on Tuesday, revealing the extent of investors’ appetite for the asset class.

    • 17 Sep 2019
  • ASR bids to improve the ‘tradeability’ of its RT1 with €200m tap

    ASR Nederland has asked its bondholders for permission to increase the size of its only restricted tier one (RT1) from €300m to €500m — a move that the Dutch insurer hopes will increase the ‘tradability and liquidity’ of the subordinated debt instrument.

    • 17 Sep 2019
  • Bangkok Bank saves on ‘extremely rare’ Thai tier two

    Strong demand for Bangkok Bank’s dollar-denominated Basel III-compliant tier two transaction allowed Thailand’s largest lender to sell a bigger deal at a tighter price than expected.

    • 17 Sep 2019
  • UniCredit reopens Italian FIG market as investors welcome new government

    UniCredit has become the first Italian bank to launch a new deal since a new government took office in the country. The €1.25bn tier two attracted €3bn of orders and was tightened more than expected, according to one of the leads.

    • 16 Sep 2019
  • Insurers seize favourable conditions to rejig debt stacks

    Allianz and Assicurazioni Generali announced plans for new subordinated bond deals on Monday, as they simultaneously looked to buy back existing bonds well in advance of first call dates.

    • 16 Sep 2019
  • Generali to break open green bond market for European insurers

    Assicurazioni Generali is set to become the first European insurance company to sell a green bond, after unveiling plans on Monday to raise up to €750m of tier two capital for green investments.

    • 16 Sep 2019
  • BEA shrugs off weak results with $650m AT1 return

    The Bank of East Asia returned to the market with a Basel III-compliant additional tier one (AT1) deal, paying no premium despite reporting disappointing interim results for the first half of 2019 and amid the turmoil in Hong Kong SAR.

    • 13 Sep 2019
  • BMO and Rothesay Life bring sterling market to life before ECB meeting

    Bank of Montreal and Rothesay Life made use of the quieter political situation in the UK this week to issue in sterling, in the same week issuance paced down in the euro market ahead of the European Central Bank’s meeting.

    • 12 Sep 2019
  • FWD Group’s $600m perp falls in secondary

    FWD Group has come to the market with yet another unusual transaction, raising $600m but seeing the bond open a whole point lower in the secondary market on Wednesday morning.

    • 11 Sep 2019
  • Achmea responds to speculation over sub debt issuance

    Achmea put out a statement on Wednesday in which it reminded investors to rely on Bloomberg for information about upcoming issuances, amid speculation that it was considering raising restricted tier one or tier two notes.

    • 11 Sep 2019
  • Investors on stand-by for new Italian FIG supply

    Italian bank bonds have performed very strongly as the country has prepared to welcome in a new government, but investors are still waiting for the sector to produce any new debt supply.

    • 11 Sep 2019
  • Rothesay Life hits sterling for blowout tier two

    Rothesay Life chose a quieter day in UK politics to issue a tier two in the sterling market on Tuesday. It also took advantage of the lack of supply in the currency and the deal was oversubscribed four times its £400m size.

    • 10 Sep 2019
  • Groupama switches old for new with tightly priced T2

    Groupama seized an opportunity to replace one of its outstanding tier twos with a cheaper set of capital instruments on Monday, drawing on sizeable demand for higher yielding assets in the euro market.

    • 09 Sep 2019
  • Bonds news in brief: Greater China credits head to dollars

    Six Greater China borrowers, including Industrial and Commercial Bank of China (Macau) and an unrated property developer, have wooed bond investors to their new dollar deals.

    • 06 Sep 2019
  • Brexit stupefies investors as Bank of Ireland misjudges mood

    Bank of Ireland was unable to complete the sale of a tier two transaction this week, after the UK Parliament descended in chaos. Bond buyers have by and large taken a pragmatic approach during Brexit negotiations, but market participants said that on this occasion the Irish issuer had “misjudged” how nervous investors were, writes David Freitas.

    • 05 Sep 2019
  • Raiffeisen Bank International EUR500m 1.5% Mar 30 tier two

    • 05 Sep 2019
  • Rabobank EUR1.25bn 3.25% PNC Dec 26 AT1

    • 05 Sep 2019
  • Early 2020 for next UK sukuk

    The UK is preparing to launch its second sukuk in early 2020, said city minister John Glen on Wednesday in a speech at an Islamic Finance Week event held at Mansion House.

    • 05 Sep 2019
  • Beazley plumps for dollars over sterling for $300m T2

    Beazley Insurance dac eschewed the sterling market to raise $300m of tier two capital in the dollar market this week, ending up with a trade that was four times subscribed by Reg S investors.

    • 05 Sep 2019
  • SG Aussie AT1 fails to reach heights of rivals

    FIG bond bankers are worried, as one put it, that “the steam is coming out of the Kangaroo market” after Thursday’s additional tier 1 (AT1) deal from Société Générale failed to reach the heights of deals from UBS and BNP Paribas earlier in the summer.

    • 05 Sep 2019
  • Bank of Jinzhou’s woes to shake support for AT1s

    Chinese city commercial bank Bank of Jinzhou plans to cancel coupon payments on its dollar additional tier one bonds for a year, the first such case from a mainland lender. The “shock” move from the beleaguered firm could shake investors’ risk appetite for bank capital deals from the country, writes Morgan Davis.

    • 05 Sep 2019
  • RBI hoovers up demand for tier two

    Raiffeisen Bank International sold a tier two bond this week, tightening pricing by 40bp. The trade was supported by hefty investor demand of €2.7bn, more than six times the deal's €500m size.

    • 04 Sep 2019
  • Bank of Ireland postpones tier two as Brexit fears swirl

    Bank of Ireland abandoned plans for a new €300m tier two on Tuesday after struggling to build much enthusiasm around the transaction. Market participants said the Irish lender had fallen victim to growing fears of a ‘no deal’ Brexit.

    • 03 Sep 2019
  • ING follows BBVA and Swedbank in AT1 dollar rally

    ING sold a dollar-denominated additional tier one (AT1) this week, adding an influx of supply in the asset class in recent weeks. It will have the option to redeem its new bonds twice a year after the first call date, instead of the usual five years in all of its outstanding bonds.

    • 03 Sep 2019
  • Rabobank sets record low coupon for euro AT1

    Rabobank launched an additional tier one (AT1) bond with a record low coupon in the euro market this week. The Dutch bank started with price thoughts of 3.625%, but tightened by 40bp to smash through the previous record of 3.5%, set by Nordea in 2017.

    • 02 Sep 2019
  • Bank of Jinzhou to cancel coupon payment on AT1

    Embattled Chinese bank, Bank of Jinzhou, has proposed cancelling coupon payments on its offshore additional tier one bonds for a year, the first such case from a Mainland lender.

    • 02 Sep 2019