Latest news with #AT1
Bloomberg
a day ago
- Business
- Bloomberg
AT1 Yield Hunters Are Skewing the Arcane Math of Risky Bank Debt
A relentless hunt for yield is messing up the intricate bond math in the riskiest type of bank debt. Investors of all stripes are piling into new Additional Tier 1 debt, lured by some of the highest yields among existing bonds, and demand is far outstripping the flood of fresh sales. The problem, according to veterans like AllianceBernstein and NinetyOne is that the new buyers are focusing too much on the high coupons. While that may work for other markets, it doesn't for AT1s.
Zawya
07-07-2025
- Business
- Zawya
RAKBANK has successfully completed its first Additional Tier 1 (AT1) security issuance, raising $300mln
Dubai, United Arab Emirates – RAKBANK has successfully completed its first Additional Tier 1 (AT1) security issuance, raising USD 300 million. The perpetual securities have a no-call period of six years (PerpNC6) and carry a coupon rate of 6.625%. The issuance was met with strong investor demand, allowing RAKBANK to tighten pricing by 37.5 basis points. This reflects investor confidence in the Bank's financial strength and growth outlook. The additional capital strengthens the Bank's ability to support lending activities, invest in strategic initiatives, and reinforce its competitive position. It also enables RAKBANK to continue delivering innovative financial products and services to its customers. About RAKBANK RAKBANK, also known as the National Bank of Ras Al Khaimah (P.S.C), is one of the UAE's oldest yet most dynamic banks. Since 1976, RAKBANK has been a market leader, offering a wide range of banking services across the UAE. We're a public joint stock company based in Ras Al Khaimah, UAE, with our head office located in the RAKBANK Building on Sheikh Mohammed Bin Zayed Road. The Government of Ras Al Khaimah holds the majority of our shares, which are publicly traded on the Abu Dhabi Securities Exchange (ADX). RAKBANK stands out for its innovation and unwavering commitment to delivering awesome customer experiences. Our transformative digital journey aims to be a 'digital bank with a human touch,' accompanying you during key moments. With 21 branches and advanced Digital Banking solutions, we offer a wide range of Personal, Wholesale, and Business Banking services. Through our Islamic Banking unit, RAKislamic, we provide Sharia-compliant services to make your banking experience seamless, whether you visit us in person or online. For more information, please visit or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with us on our social media platforms: For more information, please contact: Suzana Saoud Senior Account Manager Gambit Communications Suzana@
Al Bawaba
07-07-2025
- Business
- Al Bawaba
RAKBANK has successfully completed its first Additional Tier 1 (AT1) security issuance, raising USD 300 million
RAKBANK has successfully completed its first Additional Tier 1 (AT1) security issuance, raising USD 300 million. The perpetual securities have a no-call period of six years (PerpNC6) and carry a coupon rate of 6.625%.The issuance was met with strong investor demand, allowing RAKBANK to tighten pricing by 37.5 basis points. This reflects investor confidence in the Bank's financial strength and growth outlook. The additional capital strengthens the Bank's ability to support lending activities, invest in strategic initiatives, and reinforce its competitive position. It also enables RAKBANK to continue delivering innovative financial products and services to its customers. © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.
Zawya
06-07-2025
- Business
- Zawya
NBK prices $800mln in landmark Additional Tier 1 bond issuance
Robust participation from international investors underscores strong confidence in NBK's credit profile Intense investor demand enabled a 50bpd tightening from initial price guidance, with final pricing set at 6.375% Final pricing reflects a spread of just 240.3 basis points over US Treasury yields The orderbook peaked at US$2.2 billion, representing an oversubscription of around 2.75x the deal size International investors accounted for 53% of total allocations, while 47% originated from within the MENA region Asset managers and investment funds represented 48% of allocations, followed by banks and private banking at 44%, while other investors comprised the remaining 8% National Bank of Kuwait (NBK) successfully priced a US$800 million PNC6 Additional Tier 1 bond issuance (AT1)—its largest issuance to date in this capital tier—following strong investor demand. The issuance was met with broad interest from global investors, marking a notable return to the GCC AT1 market after a brief pause that followed a concentrated wave of issuances in May. The issuance attracted strong demand, with subscription orders peaking at US$2.2 billion—2.75x the issued amount—underscoring robust interest from a diversified pool of global investors and financial institutions. Private banks, in particular, played a pivotal role as key anchors during the orderbook building process. This overwhelming response reflects international investor confidence in NBK's solid credit profile and Kuwait's position as an attractive investment destination. MENA-based investors accounted for 47% of total allocations, followed by investors from the UK (19%), the United States (18%), Europe (13%), and Asia (3%). By investor type, asset managers and investment funds represented the largest share at 48%, followed by banks and private banking clients at 44%, while sovereign entities, insurance firms, and pension funds comprised the remaining 8% of total demand. Robust investor demand enabled NBK to achieve highly favorable pricing for the issuance, with the final yield set at 6.375%—representing a 50 basis point tightening from the initial price thoughts (IPTs) of 6.875% (equivalent to UST+240.3bps). The investment-grade credit rating of the issuance, at Baa3 from Moody's, further enhanced its appeal—driving strong interest from international private banking platforms and global asset managers. Citigroup, J.P. Morgan, HSBC, and Standard Chartered acted as Global Coordinators for the issuance, while the Joint Lead Managers included Citigroup, J.P. Morgan, HSBC, Standard Chartered, First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank, KAMCO Investment Company, and National Bank of Kuwait. The bonds, which will be listed on the London Stock Exchange, are expected to strengthen NBK's capital adequacy ratios. The new issuance was conducted in parallel with NBK's liability management exercise which offered holders of the Bank's outstanding US$750 million Additional Tier 1 securities, issued on November 27, 2019, the option to roll their existing positions into the new offering.
Zawya
01-07-2025
- Business
- Zawya
Saudi Awwal Bank to issue SAR-denominated AT1 sukuk
Saudi Arabia's Awwal Bank. rated A1 by Moody's (Stable) and A- by Fitch (Stable), plans to issue a riyal-denominated Additional Tier 1 sukuk via private placement. The bank has mandated HSBC Saudi Arabia as sole arranger and dealer for the transaction. HSBC Holdings owns a 31% stake in the Saudi lender. In May, the bank issued a $650 million 5.5-year green AT1 sukuk at the 6. 5%. (Writing by Brinda Darasha; editing by Daniel Luiz)
