Regulatory Capital - All Articles

  • ING Groep USD750m 4.875% PNC9.75 AT1

    • 27 Feb 2020
  • Hamburg Commercial to skip Milan meetings on T2 roadshow

    Hamburg Commercial Bank will no longer visit Milan on the roadshow for its new tier two bond, with parts of northern Italy having been locked down to contain the spread of Covid-19. But issuers and investors are still managing to get on with their business amid the mounting chaos.

    • 27 Feb 2020
  • Stan Chart and HSBC brace for double whammy of Covid-19, HK protests

    HSBC and Standard Chartered are expecting lower profits and higher loan impairments this year due to the Covid-19 coronavirus outbreak and an economic downturn in Hong Kong.

    • 27 Feb 2020
  • Perps flood market as investors grab for yield

    Perpetual tenors were in favour this week as four borrowers from Greater China sealed perps in a yield-hungry environment.

    • 27 Feb 2020
  • BoCom's HK arm bags $500m AT1

    Bank of Communications’ Basel III-compliant additional tier one bond issuance went as expected on Tuesday, despite a dip in investor sentiment due to the rapid spread of the coronavirus.

    • 26 Feb 2020
  • Santander UK targets capital optimisation with T2 tender offer

    Santander UK is looking to buy back part of a subordinated bond issued in 2013 in a bid to “optimise its regulatory capital structure”.

    • 25 Feb 2020
  • ING hit by weaker sentiment on return to AT1 market

    ING was praised for pricing a coupon of 4.875% in what was the only financial institution trade of the week in the euro market. The lender had to brave much tougher market conditions in its second attempt at this bond issue, having pulled its first attempt amid news of its chief executive jumping ship.

    • 24 Feb 2020
  • DBS sets new record with AT1

    DBS Group Holdings raised $1bn from a record setting bank capital transaction on Thursday. With the order book more than five times subscribed, the Singaporean bank was able to seal its trade at the lowest coupon ever.

    • 21 Feb 2020
  • CEO drama unlikely to dent ING AT1 demand

    ING left its investors bemused on Wednesday, when it decided to pull the additional tier one (AT1) bond it was marketing on the basis of undisclosed information it had received. After the news of its chief executive’s move to UBS quickly became public, the door was left open for the bank to complete the trade.

    • 20 Feb 2020
  • Intesa fires starting gun on new phase of Italian bank consolidation

    Intesa Sanpaolo took the market by surprise when it launched a takeover bid for UBI Banca this week. A successful deal could set off a long overdue wave of mergers and acquisitions within the Italian banking sector, which ECM bankers are hoping will be financed through a slew of new rights issues. Tyler Davies and Sam Kerr report.

    • 20 Feb 2020
  • BNPP sets AT1 record as Asia piles into dollars

    BNP Paribas this week set a new record low for an additional tier one (AT1) coupon issued from a European bank in the dollar market, raising $1.75bn amid heady demand for the product. Iceland’s Arion Bank was also in the market, chipping in with a $100m deal ahead of beneficial domestic tax changes.

    • 20 Feb 2020
  • Arion Bank $100m 6.25% Perpetual PNC5.5 AT1

    • 20 Feb 2020
  • Intesa Sanpaolo €750m 4.125% Perpetual PNC10 AT1 / €750m 3.75% Perpetual PNC5 AT1

    • 20 Feb 2020
  • Intesa splits AT1 needs with dual-trancher in euros

    Intesa Sanpaolo chose to split an additional tier one (AT1) deal into two tranches on Thursday, with one eye on the secondary performance of the bonds and the other on the maturity profile of its debt capital stock.

    • 20 Feb 2020
  • ING delays AT1 as Arion aims for new record

    ING Groep postponed the sale of an additional tier one after clocking up $11bn of demand in the dollar market on Wednesday. At the same time, Arion Bank was looking to launch a $100m deal in the same format — the lowest volume on record in dollars.

    • 19 Feb 2020
  • BNPP moves in for lowest ever dollar AT1 coupon

    BNP Paribas was guiding investors towards a coupon in the 4.75% area for a new additional tier one (AT1) on Tuesday, as it looked to price its deal at the lowest level ever acheived by a European bank in the dollar market.

    • 18 Feb 2020
  • Italian assets fly as Intesa launches shock bid for UBI

    Intesa Sanpaolo caught the market by surprise when it launched a takeover bid for UBI Banca on Monday night. The announcement sent credit and equity valuations surging higher, with investors pinning their hopes on consolidation in the Italian banking sector.

    • 18 Feb 2020
  • Investors urge Deutsche not to ‘do a Santander’

    Deutsche Bank secured a remarkable comeback this week with its first additional tier one transaction in nearly six years. But investors are now asking themselves whether the German lender’s next move in the asset class will be to extend the life of one of its outstanding bonds, writes Tyler Davies.

    • 13 Feb 2020
  • Deutsche Bank USD1.25bn 6% PNC5.75 AT1

    • 13 Feb 2020
  • UniCredit EUR1.25bn 3.875% PNC7.5 AT1

    • 13 Feb 2020
  • Piraeus Bank EUR500m 5.5% Feb 30 10NC5 tier two

    • 13 Feb 2020
  • Arion readies debut AT1 ahead of tax changes in Iceland

    Arion Bank showed its eagerness to issue additional tier one (AT1) capital on Thursday as Icelandic banks get ready to benefit from a change in the national tax treatment of the instruments.

    • 13 Feb 2020
  • Hunt for yield hits new high as Piraeus lands second tier two

    Piraeus Bank took advantage of the recent hunt for yield in the euro market this week, pricing a new tier two with a yield of 5.5% on Wednesday. The €500m bond was eight times subscribed, which is testament to the prevailing hunt for yield in the bond market.

    • 12 Feb 2020
  • UniCredit blows out in AT1 as it backs new P2 composition

    UniCredit was greeted with more than €7bn of demand for a new additional tier one in the euro market on Wednesday, as the bank appeared to take its first steps towards including subordinated debt as part of its stack of Pillar 2 capital.

    • 12 Feb 2020
  • FIG bonds: pessimism has been banned

    The yields on bank bonds have reached their lowest ever levels in recent weeks, thanks to meagre issuance and accommodative central bank policy. These conditions mean investors can see the silver linings, but not the clouds — and there are plenty — behind them.

    • 11 Feb 2020
  • Deutsche breaks AT1 silence with new dollar deal

    Deutsche Bank has unveiled plans to sell its first additional tier one (AT1) in more than five years, with market participants now expecting the German lender to call a bond that had once seemed certain to be left outstanding.

    • 11 Feb 2020
  • Piraeus readies T2 as Greek rally rolls on

    Piraeus Bank has mandated lead managers for the sale of a new tier two, as it looks to follow the success of its compatriot Alpha Bank. Greek banks have emerged as big winners in the secondary market recently, with investors shrugging off risks and focusing on ‘only the positives’.

    • 10 Feb 2020
  • Alpha Bank debut T2 sets tone for Greek chorus

    Greek banks looking to bring new bonds will do well to follow Alpha Bank’s example, when on Thursday it sold its inaugural tier two bond. Backed by thorough investor work and supportive market conditions, the Greek lender’s new bond exceeded yield and demand expectations.

    • 06 Feb 2020
  • Alpha Bank EUR500m 4.25% 10NC5 tier two

    • 06 Feb 2020
  • AT1s: waiting could be worth it

    Conditions for issuance in the additional tier one market may be more attractive than ever, but there’s still good reason for some bank treasury teams to bide their time.

    • 06 Feb 2020
  • Ravenous investors devour T2 debut from Alpha Bank

    Alpha Bank was more than 10 times subscribed on its debut in the tier two market on Thursday, allowing the speculative grade Greek lender to tighten its pricing by up to 100bp and land at an impressive coupon level of 4.25%.

    • 06 Feb 2020
  • Barclays shocks investors with non-call of legacy T1

    Barclays surprised some market participants this week when it said that it would not be calling one of its legacy tier one securities at its first call date in March.

    • 05 Feb 2020
  • BIS calls for ‘heightened supervisory scrutiny’ of Level 3 assets

    The Bank for International Settlements published a paper this week in which it suggested that supervisory authorities might need to introduce ‘prudential backstops’ to ensure that banks are valuing Level 3 assets appropriately.

    • 05 Feb 2020
  • Monte bonds fly amid balance sheet clean-up

    Bonds sold by Banca Monte dei Paschi di Siena were surging higher in secondary market trading this week, amid reports that the Italian bank was close to agreeing plans to offload a €10bn portfolio of non-performing loans.

    • 04 Feb 2020
  • Alpha Bank hits the road for debut tier two

    Alpha Bank announced plans for a new issue of tier two capital on Monday, as the bank looks make use of a favourable backdrop in the bond market and renewed investor interest in Greek assets.

    • 03 Feb 2020