The notes will have a maximum maturity of 10.5 years, with the Portuguese bank having the option to repay them "at any time", with some conditions.
BCP has informed the markets that it has already “set the terms” for the new issue of subordinated notes worth €300 million, an operation announced on Tuesday. The notes will have a maximum maturity of 10.5 years, with the bank having the option to repay them “at any time”, with some conditions.
“The issue will be in the aggregate amount of €300 million, with a tenor of 10.5 years and the option of early redemption by the Bank at any time during the six months between year 5 and year 5.5, a fixed annual interest rate of 4% during the first 5.5 years (corresponding to a spread of 4.065% (the “Spread”) over the 5-6 year mid-swap rate),” announced the bank in a statement sent to CMVM.
BCP also refers that, “from year 5.5 to maturity the interest rate will be determined on the basis of the then applicable 5-year mid-swap rate plus the spread.”
According to the Portuguese bank, the new issue of subordinated notes – under the Euro Note Programme and expected to be eligible as Tier 2 own fund – “were placed with a very diversified group of European institutional investors.”
“The issue is part of Millennium BCP’s strategy of continuing optimization of its capital structure, reinforcement of own funds and MREL (Minimum Requirements for Own Funds and Eligible Liabilities) eligible liabilities, as well as regularly accessing the international capital markets,” explains BCP.