Commerzbank: to issue additional Tier 1 bond
(CercleFinance.com) - German lender Commerzbank said on Tuesday that it is planning to issue additional Tier 1 instruments to strengthen and optimise its regulatory capital structure.
Commerzbank said that the additional tier 1 capital ("AT 1") will reach at least at 500 million dollars, featuring a perpetual maturity, with a first call date in 2025.
The bond terms will include a temporary write-down in the event that the bank's Common Equity Tier 1 ratio drops below 5.125%, it said.
The bond will be issued following a roadshow, depending on market conditions, Commerzbank said.
As a reminder, an "AT 1" bond constitutes unsecured and subordinated debt, ranking junior to the claims of all creditors. Investors may lose all or part of their investment if the bank's capital ratio falls below a predefined percentage.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Commerzbank said that the additional tier 1 capital ("AT 1") will reach at least at 500 million dollars, featuring a perpetual maturity, with a first call date in 2025.
The bond terms will include a temporary write-down in the event that the bank's Common Equity Tier 1 ratio drops below 5.125%, it said.
The bond will be issued following a roadshow, depending on market conditions, Commerzbank said.
As a reminder, an "AT 1" bond constitutes unsecured and subordinated debt, ranking junior to the claims of all creditors. Investors may lose all or part of their investment if the bank's capital ratio falls below a predefined percentage.
Copyright (c) 2019 CercleFinance.com. All rights reserved.