Swedbank´s issuance of Additional Tier 1 Capital confirms the bank´s strong position
Swedbank issues Additional Tier 1 Capital to optimize its capital structure. The instrument size amounts to USD 750 million and has a coupon of 5.5 per cent. The loan is perpetual with a call option after 5 years. The issuance is in the form of debt instruments that convert into ordinary shares if the regulatory capital of the bank decreases to a certain level. The instrument fulfils the new European capital regulations that aim to avoid tax payers having to support the banks in stressed situations. As a result of the transaction, Swedbank´s Tier 1 capital ratio is strengthened by 1.5