June 11, 2018 / 1:51 PM / 3 months ago

Vontobel plans 350-450 mln Sfr equity-linked bond

ZURICH, June 11 (Reuters) - Swiss bank Vontobel plans to issue a subordinated, equity-linked Additional Tier 1 bond to help finance its 700 million Swiss franc ($711 million) acquisition of private bank Notenstein La Roche, finance chief Martin Sieg said on Monday.

Credit Suisse, Raiffeisen and Vontobel are handling the issue, worth 350 million to 450 million Swiss francs, he told an investor presentation.

Pricing will be based on five-year swaps for the bond, which will be callable after 5-1/3 years. More details are due within days.

The bond would be written off if the bank’s regulatory core tier 1 capital ratio fell below 7 percent, an unlikely event equivalent to a loss of more than 400 million francs.

Vontobel, which has not posted an annual loss in the past 15 years, expects a core tier 1 ratio of 12.2 percent at the end of this year. ($1 = 0.9848 Swiss francs) (Reporting by Rupert Pretterklieber, Writing by Michael Shields; editing by Brenna Hughes Neghaiwi)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below