Handelsbanken issues Additional Tier 1 Capital
Handelsbanken issues Additional Tier 1 Capital (AT1). The issuance amount is USD 1,000 million in two tranches of USD 500 million each, at interest rates of 4.375 and 4.75 per cent respectively and an issue price of 100 per cent. The loans are perpetual, but the Bank has the option to redeem the loans after 6.5 years (March 2027) and 10.5 years (March 2031), and then subsequently every fifth year. The issuance is in the form of debt instruments with automatic conversion to class A-shares, if the Bank’s common equity tier 1 ratio (CET1) falls below a certain level. The issuance of