The Banque Centrale Populaire has informed the market of the decision to early repay the Additional Tier 1 Instrument (AT1) currently being implemented in the amount of 400 million euros.

The Bank has decided to exercise its option to prepay the entire issue of highly subordinated Tier 1 Additional Funds, on which it pays interest at 9.25%.

This decision follows an ECB mandate given in November, when the bank led by Miguel Maia “received a mandate from the ECB to reduce its own funds, by exercising the early repayment option for the ongoing additional Tier 1 issuance.” .

Additional Tier 1 Bonds (AT1) or Convertible Bonds (CoCos) were issued on January 24, 2019. At that time, the issue was offered with a final interest rate of 9.25%, meaning that the Banque Centrale Populaire pays interest for a year of approximately 40 Million dollars. euro. This early repayment therefore represents a cost saving for the bank.

The early repayment of the issue of “Additional Tier 1 Capital Bonds for Permanent and Temporary Fixed Rate Reset” will take place “on the first date stipulated in the Terms and Conditions, January 31, 2024, for the relevant amount of outstanding capital plus accrued “interest,” Banque Centrale Populaire announces. today.

Additional Tier 1 (AT1) debt securities or contingent convertible notes (CoCos) are perpetual liabilities that can be written down and converted into capital if the bank's capital ratio falls below a certain percentage.