SEB issues Additional Tier 1 Capital
SEB issues Additional Tier 1 Capital (AT1) to refinance an old similar instrument that reaches its call date later this year and to optimize its capital structure. The USD 600 million issuance has a coupon of 5.625 per cent and an issue price of 100 per cent. The loan has no final maturity but entail a possibility for the bank to redeem the loan after 5 years, and any time thereafter. The issuance is in the form of a debt instrument with automatically conversion into Class A-shares if the CET1 ratio of the bank decreases to a certain level. The issuance of the new AT1 is part of SEB's