Credit Suisse issues a call to redeem a $1.5 billion Tier 1 capital instrument to simplify its portfolio.
Switzerland's second-largest bank intends to call its last additional tier 1 (AT1) capital instrument that can be converted into equity, Credit Suisse announced in a statement on Thursday.
While Credit Suisse has several other outstanding AT1s, they are in a write-off format, and redeeming the equity conversion instrument «will therefore mark a significant simplification of our AT1 capital portfolio,» Credit Suisse said.
The redemption and replacement is part of the bank's capital funding plan for this year and includes a plan to issue up to 2 billion Swiss francs in so-called high-trigger Tier 1 capital instruments this year.
Credit Suisse is seeking to redeem is a 7.125% high-trigger Tier1 capital instrument with a first optional redemption date of July 29.
The call is subject to the successful completion and pricing of a new AT1 issue announced earlier today for a minimum of $1.5 billion and subject to approval by the Swiss Financial Market Supervisory Authority Finma.
If the criteria are met, Credit Suisse will publish the notice confirming the redemption.
