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