Raiffeisen Bank International AG (RBI) has announced a tender offer for its Additional Tier 1 Notes, which were originally issued in 2017.

Overview of the Tender Offer

The bank is offering to repurchase these notes at a purchase price of 101.875 percent, with a settlement date expected around November 27, 2024. This move is part of RBI"s ongoing strategy to effectively manage its capital structure and optimize its funding costs.

Tender Offer Details

• The tender offer began on November 18, 2024, and will expire on November 25, 2024, at 5:00 p.m. CET.
• RBI retains the discretion to reject any notes tendered by holders.
• It is important for holders located outside the Republic of Austria to familiarize themselves with relevant legal provisions before participating in the tender offer.

Issuance of New Bonds

The announcement comes at a time when RBI is also planning to issue new euro-denominated perpetual fixed-rate bonds. This dual approach of repurchasing existing notes while simultaneously issuing new bonds reflects RBI"s proactive stance in managing its capital and responding to market dynamics.

Implications for Investors

The tender offer provides an opportunity for investors to liquidate their positions at a premium, considering the current market environment. The issuance of new bonds could indicate RBI"s intent to strengthen its capital base and enhance its financial flexibility. These actions align with the broader trend among financial institutions to optimize their capital structures in response to regulatory requirements and market conditions.

Conclusion

Overall, RBI"s tender offer for its Additional Tier 1 Notes is a strategic move aimed at capital management and investor engagement, with implications for the broader banking sector.