Expanding our platform to release supplemental Tier 1 capital securities
In a recent announcement, German online bank AG has revealed its intention to issue Additional Tier 1 (AT1) capital instruments, with a benchmark size, on October 30, 2031. Each security will be denominated at €200,000.
The authorisation for this issuance was granted at the Annual General Meeting in 2022. The securities will not be registered under the Securities Act of 1933 and will only be issued under "Regulation S" of the Securities Act.
The AT1 capital instruments are a common tool used by banks to strengthen their capital base. These instruments are often perpetual or callable bonds that can be converted into equity if the bank's capital falls below a certain threshold.
While there is no specific mention of Deutsche Bank planning to issue an AT1 capital instrument in the provided search results, Deutsche Bank has been active in the financial market. For instance, they recently announced an offering of $8.593 million in 6.00% Fixed Rate Callable Senior Debt Funding Notes due June 25, 2035.
Other financial activities mentioned in the search results include Deutsche Bank's role as joint lead manager for NRW.Bank's first blockchain-based digital bond. However, specific details about an AT1 capital instrument issued by Deutsche Bank were not provided.
The securities issued by AG aim to support the bank's Tier 1 leverage ratio and meet its Pillar 1 and 2 AT1 requirements. AG will act as the sole bookrunner for the placement of these securities, and they will not be offered, sold, or delivered within the United States without registration under the Securities Act or an exemption from registration requirements.
This announcement marks an exciting development for AG, as they continue to expand and strengthen their financial position. Investors and stakeholders will be closely watching this development as the issuance date approaches.
[1] Source: Deutsche Bank Press Release, dated June 16, 2021.
The securities issued by AG are intended to be used as a tool to strengthen their capital base, similar to the AT1 capital instruments that Deutsche Bank has also been active in the financial market with. Deutsche Bank, however, has not explicitly announced plans to issue AT1 capital instruments like AG, as stated in their press release dated June 16, 2021.
