By Sarah Lizee
Olympia, Wash., June 8 Commerzbank AG issued 1.25 billion of 6 1/8% perpetual additional tier 1 capital bonds, according to a London Stock Exchange notice.
The bonds have 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 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.
This is the first AT1 bond under the banks new program for AT1 capital launched at the end of May.
With a volume of 9.5 billion, the order book was several times oversubscribed, the bank said.
The bonds will be listed on the Luxembourg Stock Exchange.
This issuance and the most recent tier 2 issuance of 750 million will reduce Commerzbank's common equity tier 1 requirement to 10.07% pro forma at the end of March.
Commerzbank is a global banking and financial services company based in Frankfurt.
| Issuer: | Commerzbank AG
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| Issue: | Additional tier 1 capital bonds
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| Amount: | 1.25 billion
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| Maturity: | Perpetual
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| Managers: | Barclays, BNP Paribas, Commerzbank, Deutsche Bank and UBS
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| Coupon: | 6 1/8%
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| Call: | From October 2025 to April 2026
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| Announcement date: | June 8
|
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