🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Fineco to decide on next AT1 call based on market conditions- CEO

Published 06/02/2024, 18:06
Updated 06/02/2024, 18:14
© Reuters.
FBK
-
0RLS
-

MILAN (Reuters) - Italian online bank and brokerage FinecoBank will decide depending on market conditions whether to repay an 'Additional Tier 1' (AT1) perpetual bond with a first call option coming due in the fourth quarter, its chief executive said on Tuesday.

"We are waiting a green light from the ECB, and once it arrives we will move in line with market conditions", CEO Alessandro Foti told a post-result press conference.

Fineco issued a 300 million euro AT1 on July 2019, when UniCredit (LON:0RLS) sold its residual stake in the company, in order to maintain the leverage ratio above 3.5%.

The perpetual bond has a first call option due on Dec. 3.

Fineco's AT1 issue is rated 'BB-' by S&P.

The $275 billion AT1 market bounced back late last year from a shock bondholder wipeout during the Credit Suisse (SIX:CSGN) rescue.

AT1 bonds count towards banks' 'Tier 1' capital because they are designed in such a way that they can absorb potential losses.

Reuters reported in December that Italian issuers, after a slow 2023, were expected to seize the traditional start of the year momentum in bond markets, including by selling AT1 debt.

(Andrea Mandalà, editing by Gianluca Semeraro and Ros Russell)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.