The securities carry a coupon of 5.75% and include an optional redemption on 20 April 2022 or on 20 April of each year thereafter. The securities will be issued in denominations of SGD 250,000 and multiples thereof. The transaction helps to optimise Julius Baer Group’s capital structure, taking into account the transitional effects of the Basel III capital requirements, fully effective from the beginning of 2018.
The securities are fully compliant with Basel III and qualify as Additional Tier 1 capital, enhancing the Group’s solid capital levels. Moody’s assigned the instrument a provisional Baa3 rating, which is equivalent to the outstanding Additional Tier 1 instrument issued in November 2015. An application has been made for provisional admission to trading on the Singapore Exchange.
Dieter A. Enkelmann, Chief Financial Officer of Julius Baer Group Ltd., said: “After last year’s successful debut transaction and the strong performance of our inaugural deal, we are proud that investors have welcomed us again in the Singapore market. For Julius Baer the SGD AT1 market has offered again the most attractive conditions for the targeted amount resulting in an even lower coupon level than in the previous transaction. The placement has been executed in a short time frame in order to take advantage of an attractive market window. This second transaction emphasises the importance of, and our commitment to, Asia as Julius Baer’s second home market and further diversifies our AT1 investor base.”