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Zurich, 5 September 2017 – Julius Baer Group Ltd. has successfully placed perpetual non-cumulative high-trigger Additional Tier 1 (AT1) securities in a debut USD 300 million transaction with institutional and qualified private banking investors in Asia and Europe. The transaction helps to optimise Julius Baer Group’s capital structure.
The securities carry a coupon of 4.75% per annum payable semi-annually and include a first optional call date on 12 September 2024 or on each coupon date thereafter. They have been issued in denominations of USD 200,000 and multiples of USD 1,000 thereof.
The securities are fully compliant with Basel III and qualify as Additional Tier 1 capital, thus further increasing the Group’s solid capital levels and supporting the Group’s Moody’s ratings.
The instrument has been assigned a Moody’s provisional Baa3 instrument rating, which is equivalent to the ratings of the two outstanding SGD high-trigger AT1 securities issued in 2015 and 2016. An application has been made for provisional admission to trading on the SIX Swiss Exchange.
Dieter A. Enkelmann, Chief Financial Officer of Julius Baer Group Ltd., said: “Through this successful inaugural RegS USD AT1 transaction, we were able to capitalise on current attractive market conditions and, at the same time, further diversify Julius Baer’s AT1 investor base following the successful issuances in the Swiss and Singaporean markets in recent years. The transaction received overwhelming demand and represents the lowest coupon achieved for a USD AT1 transaction from a European bank, confirming Julius Baer’s sound market standing.”