Commerzbank plumps capital buffer with AT1 bond sale
Bail-in instrument helps expand buffer above MDA limit to around 220bp
After a successful debut in the bail-in bond market, Commerzbank saw its Tier 1 capital lift 4% to €25.3 billion ($28 billion) in the third quarter.
The German lender placed its first additional Tier 1 (AT1) bond in July, a $1 billion issue which can be written down if the bank’s Common Equity Tier 1 (CET1) capital ratio drops below 5.125%.
The bond sale helped the bank elevate its AT1 capital to €1.7 billion from just €807 million at end-June.
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