Business
Additional Tier 1 Securities
Additional Tier 1 Securities.
About this update from Close Brothers Group Plc
[{"type":"text","content":"\n\n \nPress Release \n\n\n\n\nClose Brothers Group plc issues inaugural Perpetual Additional Tier 1 securities\n\n\n\n\n29 November 2023\n\n\n\n\n\n\n\nClose Brothers Group plc (\"the group\" or \"Close Brothers\") has successfully issued its inaugural Fixed Rate Resetting Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities in a £200 million transaction, which attracted £1.48 billion of interest from institutional investors and private banks in the UK, Europe, North America and Asia.\nIn line with the group's capital management framework and strategy, the transaction optimises our capital structure and provides further flexibility to grow the business. The issuance strengthened the group's Total capital ratio by c.200bps to 16.6% on a pro-forma basis as at 31 October 20231.\nThe securities carry a coupon of 11.125%, payable semi-annually on 29 May and 29 November of each year, commencing on 29 May 2024, and have a first reset date on 29 May 2029. The securities include, among other things, a conversion trigger of 7.0% Common Equity Tier 1 capital ratio and are callable any time in the six-month period prior to and including the first reset date or on each reset date occurring every 5 years thereafter.\nThe instrument has been assigned a Moody's Baa2 instrument rating. An application has been made for the Securities to be admitted to trading on the International Securities Market of the London Stock Exchange.\nTo view the full Offering Circu...