Commerzbank successfully issues additional tier 1 bond
Commerzbank AG has successfully issued the first AT1 bond under its new issuance programme for additional tier 1 capital (AT1).
Commerzbank Aktiengesellschaft (CZB) Commerzbank successfully issues additional tier 1 bond Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN, AUSTRALIA OR IN ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. - First issuance under new programme met with great interest from investors - Bond volume of €1.25 billion - coupon laid down at 6.125% per annum volume
With the issuance, Commerzbank further strengthens and optimises its capital structure. The new bond also enables Commerzbank to make use of the recent regulatory changes, whereby AT1 can now be used to a greater extent to meet the capital requirements (SREP). At the end of May 2020, Commerzbank had launched an issuance programme for AT1 capital which enables it to gradually issue subordinated bonds with a total nominal value of up to €3 billion over the next years. Overall, this issuance and the most recent Tier 2 issuance of €750 million will reduce Commerzbank's Common Equity Tier 1 (CET1) requirement (MDA threshold) to 10.07% pro forma at the end of March 2020. 'The first transaction under our new issuance programme has been met with a great interest. As a result, we were able to issue the bond with very good conditions. The further improved capital structure gives us additional leeway,' said Bettina Orlopp, Chief Financial Officer of Commerzbank. The new bond has a perpetual maturity and a first call date from October 2025 to April 2026. The bond terms include a temporary write-down in the event that the Bank's Common Equity Tier 1 ratio (CET 1 ratio) drops below 5.125%. The subscription right of the shareholders was excluded. Joint lead managers for the transaction were Barclays, BNP Paribas, Commerzbank, Deutsche Bank and UBS. ***** Press contact ***** About Commerzbank ***** Disclaimer
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ISIN: | DE000CBK1001 |
Category Code: | MSCU |
TIDM: | CZB |
LEI Code: | 851WYGNLUQLFZBSYGB56 |
Sequence No.: | 68514 |
EQS News ID: | 1065495 |
End of Announcement | EQS News Service |
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