ABN AMRO issued EUR 1.0 billion of Additional Tier 1 Capital

Press release -

Today, ABN AMRO Bank has issued EUR 1.0 billion of deeply subordinated securities that qualify as Additional Tier 1 capital under CRR.

The Perpetual Additional Tier 1 Capital Securities have a temporary write-down loss absorption mechanism, a semi-annual discretionary non-cumulative coupon and are callable at year 10. With a coupon of 4.75% ABN AMRO was able to take advantage of favourable market conditions. 

This transaction improves the leverage ratio, further optimises capital structure and strengthens the buffer of loss absorbing instruments. On a fully loaded and pro forma basis, the Q2 2017 leverage ratio would increase to 4.1% (from 3.9%) and now exceeds the 4% originally targeted by year-end 2018. The pro forma Q2 2017 Tier 1 ratio would increase to 19.5% (from 18.6%). 

The AT1 prospectus will become available on the ABN AMRO website. 

This press release shall not constitute an offer to purchase or the solicitation of an offer to purchase, nor shall there be any offer or sale of these Additional Tier 1 Capital Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or compliance with any other requirement under the relevant securities laws of any such jurisdiction.

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