The leading cooperative institute collects more money than originally planned with an equity-like loan.
(Photo: dpa)
Frankfurt There has been a lot of uncertainty in the equity-like bond market since the Credit Suisse bailout in March. Since then, most financial institutions have avoided issuing so-called Additional Tier 1 (AT1) bonds.
But now DZ Bank has pushed ahead with the first major issue in Germany since the Credit Suisse rescue. The Frankfurt institute collects more than one billion euros with an AT1 bond and thus shows that refinancing via this instrument is still possible for stable financial institutions. It is possible that Germany’s second-largest commercial bank is also helping to open up the approximately EUR 250 billion AT1 market in Europe.
Originally, DZ Bank wanted to collect up to 850 million euros from its owners, the Volks- und Raiffeisenbanken. Because of the high demand, however, the board of directors increased the total volume of the issue to 1.143 billion euros, wrote the co-bosses Cornelius Riese and Uwe Fröhlich in a letter to the board members of the cooperative banks.
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