LONDON, March 4 (IFR) - Nationwide is set to give its
capital base a huge boost by raising GBP1bn in the Additional
The UK lender began marketing the perpetual non-call
5.25-year deal on Tuesday morning via Citigroup, Deutsche Bank,
RBS and UBS and at the last update said it would price it with a
The Additional Tier 1 is Nationwide's second capital raise
since November last year when it priced a £500m Core Capital
Deferred Shares (CCDS) issue.
Under the terms of the new deal, the bonds will convert into
CCDS if Nationwide's fully-phased Common Equity Tier 1 ratio
falls below 7%.
CCDS are similar to equity, being truly perpetual and with
distributions that are variable and entirely discretionary.