Zurich, 5 June 2019 – Today, Julius Baer Group Ltd. has successfully placed perpetual non-cumulative low-trigger Additional Tier 1 (AT1) securities in a CHF 300 million transaction mostly with private banks and institutional investors in Switzerland. The transaction helps to optimise Julius Baer Group’s capital structure and flexibility.
The new securities have been assigned a Moody’s Baa2 instrument rating, which is one notch higher than Julius Baer’s outstanding high-trigger AT1 bonds in the Singapore dollar and US dollar markets. The new securities carry a coupon of 2.375% payable annually and have a First Reset Date on 25 September 2025 or on each coupon date thereafter. The securities are also callable anytime in the three-month period prior to the First Reset Date. The securities will be issued in standard Swiss franc-market denominations of CHF 5,000. An application has been made for provisional admission to trading on the SIX Swiss Exchange.
The securities are fully compliant with Basel III and qualify as AT1 capital, thus further strengthening the Group’s solid capital levels.
Dieter A. Enkelmann, Chief Financial Officer of Julius Baer Group Ltd., said: “We are very pleased that the Swiss AT1 investor base has warmly welcomed Julius Baer’s first Swiss franc-denominated AT1 placement since 2014. The Swiss franc market offered an attractive opportunity, enabling the Group to issue the securities at a coupon that is the lowest in our AT1 issuance history, thereby further underlining Julius Baer’s sound market standing.”