Commerzbank successfully issues additional tier 1 bond

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Commerzbank successfully issues additional tier 1 bond

Commerzbank AG has successfully issued its inaugural additional tier 1 bond. The bond has a volume of 1 billion US dollars and a fixed coupon of 7.0% per annum. The order book was several times oversubscribed, which reflects the extensive interest of investors. The bond will be listed on the Luxembourg Stock Exchange.

With the issue today, the Bank is optimising its capital structure, also in light of changed regulatory requirements imposed by the European Banking Authority (EBA). The subordinated bond meets the criteria set out in the Capital Requirements Regulation (CRR) for additional tier 1 capital (AT1). The instrument has a perpetual maturity and a first call date in April 2025. The bond terms allow for a temporary write-down in the event that the core equity tier 1 ratio (CET1 ratio) of the Bank drops below 5.125 per cent.

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Disclaimer
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities in the United States of America, Canada, Japan, Australia, or in any jurisdiction in which such offer or solicitation is unlawful. This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts. In this release, these statements concern inter alia the expected future business of Commerzbank, efficiency gains and expected synergies, expected growth prospects and other opportunities for an increase in value of Commerzbank as well as expected future financial results, restructuring costs and other financial developments and information. These forward-looking statements are based on the management's current plans, expectations, estimates and projections. They are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. Such factors include the conditions in the financial markets in Germany, in Europe, in the USA and other regions from which Commerzbank derives a substantial portion of its revenues and in which Commerzbank holds a substantial portion of its assets, the development of asset prices and market volatility, especially due to the ongoing European debt crisis, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, the reliability of its risk management policies, procedures and methods, risks arising as a result of regulatory change and other risks. Forward-looking statements therefore speak only as of the date they are made. Commerzbank has no obligation to update or release any revisions to the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.