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
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)