Aareal Bank Successfully Issues AT1 Capital Notes

Aareal Bank AG announced the successful placement of Additional Tier 1 (AT1) capital instruments, valued at USD 425 million. Issued as perpetual subordinated notes with an initial coupon rate of 9.875% p.a., the demand for these notes was strong, resulting in a significantly oversubscribed order book. The transaction settlement is anticipated by January 22, 2025.

The issuance was authorized by the 2023 Annual General Meeting to optimize the bank’s capital structure. With a call date set for July 31, 2030, each note is denominated at USD 200,000. The placement drew support from a team of global financial institutions, including Morgan Stanley and BofA Securities, among others.

Andy Halford, CFO of Aareal Bank, highlighted the transaction as a seamless continuation of previous successful funding activities, reaffirming investor trust in the bank’s market reputation.