(Telestock) – Generali Bank announces that it has defined the economic conditions of an issuance of Additional Tier 1 instruments for a total amount equal to 100 million euroswhich will be entirely subscribed by companies of the Generali Group in the form of a private placementfor greater flexibility and operational efficiency. The titles will be issued on August 8, 2024.
The issue is aimed, in part, at Reimbursement at par with the bond Additional Tier 1 outstanding, issued on 23 December 2019 with a value of 50 million of euros and held by the Generali Group and, for the remaining part, in order to respond with great flexibility to increased requirements that the introduction of Basel IV will entail for the Bank, as for the entire Italian and European banking sector, starting from 1 January 2025. The Issue is computable for MREL purposes.
With reference to the main terms of the Issue, it is noted that, the half-yearly couponnot cumulative, was set at 6.7% on an annual basis for the period until August 8, 2029 and, subsequently, will come recalculated every 5 years. In accordance with current legislation and market practice, The Emission is perpetual and may be redeemed early by the Issuer only starting from the fifth year (8 August 2029) and, subsequently, on each coupon payment date.
The Redemption of the Additional Tier 1 instrument issued in 2019 is subject to prior authorization by the competent supervisory authority, as well as to the satisfaction of the conditions set forth by current legislation. In this regard, it is specified that a specific request has been submitted to the Bank of Italy.