Advertisement
UK markets open in 7 hours 24 minutes

  • NIKKEI 225

    38,835.10
    +599.03 (+1.57%)
     

  • HANG SENG

    18,479.37
    -98.93 (-0.53%)
     

  • CRUDE OIL

    78.34
    -0.04 (-0.05%)
     

  • GOLD FUTURES

    2,322.90
    -1.30 (-0.06%)
     

  • DOW

    38,884.26
    +31.99 (+0.08%)
     

  • Bitcoin GBP

    49,941.18
    -731.16 (-1.44%)
     

  • CMC Crypto 200

    1,292.74
    -72.38 (-5.30%)
     

  • NASDAQ Composite

    16,332.56
    -16.69 (-0.10%)
     

  • UK FTSE All Share

    4,522.99
    +53.90 (+1.21%)
     
Money:

The retirement income gap no-one is talking about

People are living longer than ever before and this can impact how you plan for retirement

Standard Chartered offers US dollar AT1 bonds at 8% area

Reuters - UK Focus

By Daniel Stanton

SINGAPORE, Jan 11 (IFR) - Standard Chartered Plc (BSE: 580001.BO - news) 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+.

ADVERTISEMENT

Bank of America Merrill Lynch, BNP Paribas (LSE: 0HB5.L - news) , Citigroup (NYSE: C - news) and Standard Chartered are joint lead managers.

In November, StanChart (HKSE: 2888-OL.HK - news) 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)