Handelsbanken issues Additional Tier 1 Capital

Handelsbanken issues Additional Tier 1 Capital (AT1). The issuance amount is USD 500 million, at an interest rate of 6.25 per cent and an issue price of 100 per cent. 

The loan is perpetual, but the Bank has the option to redeem the loan after five years (March 2024), and then subsequently every fifth year. The issuance is in the form of a debt instrument with automatic conversion to class A-shares, if the Bank’s common equity tier 1 ratio (CET1) falls below a certain level. 

Handelsbanken’s common equity tier 1 ratio at the end of the fourth quarter of 2018 was 16.8 per cent. The issuance will strengthen the Bank’s tier 1 ratio by about 0,6 percentage points.  

The issuance will be subscribed by and allotted to the joint lead managers. The settlement date is 22 February 2019. 

The instruments will be listed on the official list of Euronext Dublin.

For further information, please contact:
Rolf Marquardt, CFO, + 46 8–22 92 20
Lars Höglund, Head of Investor Relations, +46 8–701 51 70, +46 70–345 51 70

This information is of the type that Handelsbanken is obliged to make public pursuant to the EU Market Abuse Regulation, the Swedish Securities Markets Act and the Swedish Financial Instruments Trading Act. The information was submitted for publication through the agency of the contact person set out above, at 12.30 CET on 15 February 2019.
For more information about Handelsbanken, see: www.handelsbanken.com