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Allen & Overy advises FinecoBank on a new Additional Tier 1 bond and a liability management deal

Allen & Overy has advised FinecoBank on the placement of an Additional Tier 1 bond for a nominal value of EUR500 million, intended for institutional investors.

The notes are perpetual and their maturity is linked to the issuer’s statutory duration with the option to call them back prematurely. For the first five and a half years, the notes pay a fixed annual coupon equal to 7.5%, paid semi-annually. Should the issuer not call the bond between 11 March 2029 and 11 September 2029, the coupon will be redefined at five-year intervals based on the five-year swap rate applicable at that time, increased by a margin of +4.889%. The bond is issued under FinecoBank’s EUR2 billion Euro Medium Term Notes programme and is admitted to listing on the Euronext Dublin regulated market.

On 13 March 2024 settlement of the cash tender offer took place in respect of any and all of FinecoBank’s €300,000,000 Non-Cumulative Temporary Write-Down Deeply Subordinated Fixed Rate Resettable Notes (ISIN: XS2029623191), in an aggregate nominal amount outstanding of EUR300 million, carried out as part of the offeror’s proactive management of its capital.

The Allen & Overy team was led by partners Craig Byrne and Cristiano Tommasi, supported by associates Elisabetta Rapisarda and Marco Mazzurco. Counsel Elia Ferdinando Clarizia advised on tax aspects.