Aareal Bank and Pfandbriefbank will not repay their AT1 bonds
Deutsche Pfandbriefbank (PBB) and Aareal Bank do not want to call their AT1 bonds as soon as possible at the end of April. Instead of calling the bond, PBB wants to set a new fixed coupon, the bank announced on Wednesday. In view of the rise in interest rates, the new coupon could be between 8.5 and 9 percent, according to calculations by the Reuters news agency. The bond with a volume of EUR 300 million currently has a fixed coupon of 5.75 percent.
Aareal Bank said on Wednesday that no final decision had yet been made. However, it is assumed that the bond will not be terminated, a spokesman for the bank said on request. The Aareal bond with a volume of EUR 300 million currently has a fixed coupon of 7.32 percent.
After the Swiss financial regulator announced that AT1 bondholders would get nothing after UBS’s emergency takeover of Credit Suisse, the market for these bonds deteriorated: the PBB bond collapsed by 74 percent of its face value on Monday.