SINGAPORE, Jan 11 (IFR) - Standard Chartered Plc is offering US dollar Additional Tier 1 securities at yield guidance of 8 percent area.
The perpetual securities are callable in April 2023. The 144A/Reg S deal is indicated at benchmark size and pricing is expected today.
If the bonds are not called, the interest rate will reset to the initial spread over five-year US Treasuries, and will reset every five years thereafter.
The bonds will convert into equity if the bank’s core equity Tier 1 capital ratio drops below 7 percent.
Expected ratings for the notes are Ba1/BB-/BB+.
Bank of America Merrill Lynch, BNP Paribas, Citigroup and Standard Chartered are joint lead managers.
In November, StanChart surprised the credit market by announcing that it would not redeem its old-style Tier 1 bonds which are callable this month. Those perpetual preferred bonds paid a coupon of 6.409 percent, falling to 151bp over Libor after the call date. (Reporting by Daniel Stanton; Editing by Vincent Baby)