Zurich based Swiss bank Julius Baer plans to issue subordinated bonds to be listed on the Singapore Exchange – a first for a foreign banking institution. The move also emphasises the significance of the Asian marketplace to the private bank, which frequently claims Asia to be its second home.
The planned issuance aims at optimising Julius Baer Group Ltd.’s capital structure, also taking into account the phasing-out of Basel III capital recognition of Julius Baer Group’s outstanding ‘old- style’ capital instruments (preferred securities and lower tier 2 subordinated unsecured bonds).
The bonds would be fully compliant with Basel III and qualify as Additional Tier 1 (AT1) capital, thus benefitting the Group’s very solid capital levels and ratings as the basis for the Group’s further profitable growth.
In light of the contemplated transaction, the publication of the Interim Management Statement for the first ten months of 2015 (IMS II-2015) will now be brought forward to 10 November 2015 (instead of 16 November 2015).
Julius Baer Group Ltd. has requested Moody’s to rate the bonds.
