Linklaters and Uría Menéndez advise on the launch of a 250m AT1 issue by ABANCA

Linklaters and Uría Menéndez have advised on a new issue of €250m perpetual non-cumulative additional tier 1 (AT1) preferred securities by ABANCA. Linklaters has advised the joint lead managers, as well as the sole dealer manager on a concurrent tender offer in respect ABANCA’s AT1 preferred securities issued in 2018. And Uría Menéndez has advised ABANCA Corporación Bancaria.

ABANCA has announced and executed a €250 million regulatory capital issue in 10.625% convertible contingent perpetual bonds. This new issue will replace the one issued in October 2018, will be disbursed on 14 July, and has an (expected) rating of B+ (Fitch).

The market has reacted with great interest, demonstrated by a volume of demand that exceeded the amount offered by 2.4 times. More than 70 individual orders were submitted to the transaction, most of them from stable, high quality investors. The transaction was completed this morning in an environment conditioned by macroeconomic and geopolitical uncertainties, highlighting the Bank’s decision to go to the market and the solid response of its investors.

In line with the efficient management of its MREL instruments, ABANCA has offered investors in the October 2018 issue the possibility of bringing forward its cancellation, scheduled for 2 October this year, by repurchasing it. Both operations will be settled on 14 July.

Linklaters team has been led by Jorge Alegre (partner) and Federico Briano (partner), with support from Borja Oñoro (managing associate) and Jorge S. (junior associate).

Uría Menéndez team was led by Carolina Albuerne (partner, M&A – private equity); Javier Redonet (partner, capital markets); José Ignacio Baus (associate, capital markets); Ramón Riera (junior associate, M&A – private equity) and Miloslava Ilcheva (associate, tax).

Julia Gil