Reuters: Bankruptcy News: UPDATE 1-Societe Generale preps BBVA Tier 1 follow-up

Reuters: Bankruptcy News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Dropbox for Business Keep your organization's files in sync. Dropbox for Business has unlimited space, file sharing, and admin tools to manage your team. Start a free trial at no cost. From our sponsors

UPDATE 1-Societe Generale preps BBVA Tier 1 follow-up Aug 19th 2013, 15:30 Mon Aug 19, 2013 11:30am EDT (Recasts and adds background detail on structure) By Aimee Donnellan LONDON, Aug 19 (IFR) - Societe Generale is poised to become the second European bank to sell Additional Tier 1 capital that complies with the Capital Requirements Directive (CRD IV), a move that could pave the way for a slew of similar deals from other European banks. The French bank, rated A2/A/A, is preparing to meet with investors next week to discuss structure and pricing on the new Reg S bond that will help the bank meet requirements on leverage ratios, according to a market source. The deal is likely to have a low trigger, according to the banker, who said that the French regulator has given Societe Generale the go-ahead to issue such an instrument. European banks are seeking to raise Tier 1 debt to meet the minimum 3% leverage ratio requirement set out by the Basel committee. BNP Paribas is the only eurozone bank to surpass that minimum requirement, according to Barclays research released earlier this year, although RBS and UK-headquartered HSBC have both exceeded the target. Societe Generale's potential bond sale will provide a much needed follow-up to BBVA's groundbreaking Additional Tier 1 bond sold earlier this year. The offering was the first of its kind to comply with CRD IV and is likely to provide a useful benchmark for pricing. The USD1.5bn perpetual deal priced at 9% in late April and was trading at a yield of 9.6% on Monday, according to a senior syndicate banker. European banks have abstained from issuing Tier 1 capital this year as talk of QE tapering sparked a global sell-off, causing spreads to widen and yields to rise. Banks have also struggled with a lack of clarity on the tax treatment of Additional Tier 1 instruments. Societe Generale will act as the global coordinator and structuring adviser for the deal, while Citigroup, Credit Suisse, Deutsche Bank and HSBC are to arrange the fixed income investor meetings in Europe and Asia in the week beginning 26th August. (Reporting by Aimee Donnellan, editing by Julian Baker) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions