Raiffeisen Bank International : Issuance focus
RBI has just come to the market to issue its first AT1. This will allow it to full its bucket of 1.5% RWA (€ 1bn) and hence improve its distance to the MDA from 275bp today to 425bp post-issuance (assuming a € 1bn benchmark issue).The proposed structure is a low-trigger one (CET1<5.125%) set at the group level and at the level of issuer RBI AG, and a depreciation of the nominal with a return to better fortune clause.The distance to the MDA is comfortable today. It is set to fall to a management buffer of just 170bp by 2019. ADI calculated under Austrian Gaap total € 855m. After the episode experienced by Deutsche Bank in February 2016, our worry is that its weak amount and unclear functioning will spark concerns if RBI runs into financial difficulty.The five-year call proposed and the BB rating make this issue comparable to those of:UCGIM PNC22 9.25% (B+) – YTC: 6.1%BBVA PNC22 5.875% (BB) – YTC: 5.7%CXGD PNC22 10.75% (B- Fitch) – YTC: 9.6%ERSTE PNC24 6.5% (BB+) – YTC: 4.95%The price talk announced this morning of 6.375% is fair compared with these peers.>Raiffeisen Bank International is a universal bank focusing on corporate and retail customers in Central and Eastern Europe (CEE) and on corporate customers in Austria. In CEE, Co. consists of a network of banks, leasing companies and financial service providers. In Austria, Co. is involved in corporate finance and export and trade finance banks. Co. provides services to customers in 2,800 branch offices. In the retail banking business, Co.'s product and service portfolio comprises inter alia credit services (mortgages, credit cards and personal loans), as well as payment transaction and current account package services. As of Dec 31 2014, Co.'s total assets amounted to Euro121.6 million
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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