CaixaBank has launched its fifth issue of preference shares eventually convertible into shares for an import of 750 million euros and a coupon of 8.25%. The transaction has had the participation of more than 170 institutional investors, as reported this Wednesday in a statement.
This is CaixaBank’s third debt issuance in 2023 after the issuance of non-preferred senior debt in dollars and subordinated debt in sterling made in January. The previous issuance of AT1 was carried out in September 2021. These preference shares are perpetual, with the possibility of early redemption by the issuer as of March 2029, which makes it possible to extend the refinancing profile of CaixaBank’s AT1 instruments.
As explained by the bank, the issuance has reached more than 2,500 million euros –more than 3.3 times overwritten– and has allowed a narrowing of the price by 37.5 bps, from the level offered when launching the operation, up to a final coupon of 8.25%.
“This new issue reinforces CaixaBank’s excellent solvency ratios, up to 15.1% and 18.0% for Tier 1 and Total Capital respectively, maintains flexibility in the management of the AT1 issue buffer, while contributing to maintaining its solid leverage ratio of 5.7%, above the 3.0% requirement and increase the anti-crisis buffer (MREL) to 27.1%, broadening the support of the most senior creditors”, he concluded.
Aimed at professional investors
“Preferred shares are perpetual, notwithstanding ordinary detriment to which they can be redeemed in certain circumstances at the option of CaixaBank and, in any case, they will be converted into newly issued shares of the entity if CaixaBank or the CaixaBank Group has a capital ratio of Ordinary level 1”, says the entity. The issue has been addressed exclusively to professional investors and eligible counterparties, expressly excluding retailers.
