RBI seeks to optimise capital structure with sub exchange

Wed Oct 10, 2012 3:35am EDT

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LONDON, Oct 10 (IFR) - Raiffeisen Bank International announced plans to optimise its capital structure on Wednesday by asking investors to exchange an Upper Tier 2 note callable later this month into a new longer-dated Tier 2 security.

However, RBI's offer came at the same time as a warning to investors that it would decide whether to call the 5.77% EUR600m bond (callable on October 29) with reference to prevailing regulatory, economic, and market conditions.

RBI said it wants to exchange any and all of the outstanding Upper Tier 2 bond for a new 10.5 non-call 5-5 year Tier 2 with a 5.875% coupon, on a par-for-par basis.

The new notes will mature on April 27 2023 and have a one-time call on April 27 2018. The 5.875% coupon on the new notes will be non-deferrable and will have a one-time reset at mid-swaps plus 484bp.

The offer expires on October 23 and will be settled on October 29. Deutsche Bank, Bank of America Merrill Lynch, RBI are handling the exercise. (Reporting by Helene Durand; editing by Alex Chambers)

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