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The European Banking Authority (EBA) offered relief to the Additional Tier 1 (AT1) market on 1 July when it announced that stress test-related Pillar 2 requirements need not be included in MDA calculations, thereby easing ...

Effective EBA Pillar 2 split offers AT1 relief

Regulation & ratings

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Nykredit Realkredit launched what has been touted as the first Tier 3 instrument in the new bail-in era on 6 June, a Eu500m three year “senior resolution note” (SRN) that sits in between the issuer’s senior unsecured ...

Innovative Nykredit SRN augurs well for Tier 3

Market

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Efforts in the past year such as NPL reform and the launch of the Atlante fund raised hopes that alternatives to bail-outs/ins could be found to address capital pressures facing Italian banks — but then Brexit struck. Neil ...

Italy: Pride before a fall?

Focus

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Sumitomo Mitsui Financial Group (SMFG) launched the first HoldCo transaction in euros from a Japanese G-SIB on 7 June and attracted Eu2.75bn of demand to its Eu1.5bn 10 year deal at a level deemed attractive for the issuer. ...

SMFG euro HoldCo debut impresses

Market

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Australia & New Zealand Banking Group (ANZ) launched the first Basel III-compliant Additional Tier 1 issue into international markets from Australia on 7 June with a US$1bn (A$1.36bn, Eu881m) perpetual non-call 10 ...

ANZ US$1bn blow-out takes Aussie AT1 offshore

Market

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The second quarter proved more constructive for Additional Tier 1 than had the mostly torrid opening months of the year, but although regulators did their part in bringing stability to the asset class, the positive sentiment ...

Brexit lockdown stymies AT1 after Spring green shoots

Market

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Axa reopened the euro hybrid insurance sector on 23 March to sell its first new subordinated issue since 2014, a Eu1.5bn 31.25NC11.25 Tier 2 deal. Here, Nicolas Benhamou-Rondeau, Axa head of funding and capital markets ...

Axa: Quality return after volatility

Q&As

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Belgium’s Belfius Bank launched its first Tier 2 transaction on 28 April, a Eu500m 10 year bullet. Here, Ellen Van Steen, head of long term funding at Belfius, explains how the debut fits into and builds on the bank’s ...

Belfius: Stepping into Tier 2

Q&As

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Although Solvency II is not triggering changes to Fitch’s ratings of insurers, it is a credit positive for the European industry, according to Harish Gohil, managing director, EMEA insurance, Fitch Ratings, who discusses ...

Tier 1 awaited after Solvency II arrival

Regulation & ratings

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UniCredit on 26 May sold its first Tier 2 issue since October 2013, a Eu750m 10.5 year non-call 5.5 transaction, after buying back Eu414m equivalent of old-style Tier 1 and Lower Tier 2 euro and sterling bonds. Here, Waleed ...

Buy-back buoys Eu750m UniCredit Tier 2 return

Market, News in brief

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UBI Banca launched the first Italian Tier 2 issue of 2016 on 27 April, a Eu750m 10 year non-call five deal priced at 4.25% from IPTs of the 4.5% area on the back of a Eu1.5bn book featuring some 180 accounts. Here, Giorgio ...

UBI reopens Tier 2 for Italians with Eu750m deal

Market

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Crédit Mutuel Arkéa returned to the Tier 2 market for the first time in eight years in May and was joined by La Banque Postale the following week, with the two financial institutions launching their Eu500m subordinated ...

Arkéa, La Banque Postale return before first non-preferred

Market