Julius Baer Group Ltd has successfully placed CHF350m (€286m) of subordinated, unsecured debt with private and institutional investors after a short book-building process.

The perpetual non-cumulative additional tier 1 securities carry a coupon of 4.25% and include an optional redemption call on 5 June 2020, and at any interest payment date thereafter. Julius Baer said the securities will be issued in denominations of CHF5,000 (€4,095) and multiples thereof.

The bank said in a statement that the additional hybrid tier 1 capital will balance the diminishing Basel III capital recognition of Julius Baer Group’s outstanding old style capital instruments including preferred securities and lower tier 2 subordinated unsecured bonds.

Julius Baer Group has submitted an application for provisional admission to trading on the SIX Swiss Exchange.

According to SRP data, Julius Baer has over 780 live structured notes in the Swiss market.

Deutsche Bank
Deutsche Bank has also placed undated additional tier 1 notes with an equivalent value of €3.5bn.

The offering consisted of three tranches including a €1.75bn tranche with a coupon of 6% (ISIN: DE000DB7XHP3); a $1.25bn tranche with a coupon of 6.25% (ISIN: XS1071551474); and a £650m tranche with a coupon of 7.125% (ISIN: XS1071551391). All tranches will be priced at an issue price of par (100%) or greater, said the German bank.

Deutsche Bank said that warrants to subscribe a total of 30,250 shares, which had originally been attached to the notes, were already detached by an initial subscriber. All three tranches are expected to be listed on the Luxembourg Stock Exchange. The denominations of the individual notes are €100,000, $200,000 and £100,000, respectively.

Deutsche Bank AG acted as sole bookrunner for the offering.

Jefferies Group
In addition, Jefferies Group announced last week that it raised a total of €500m in the company’s inaugural euro-denominated debt offering via an unsecured, senior note with a 2.375% coupon maturing in May 2020.

The 2.375% note was priced to yield 2.421% at a spread of 140 basis points over six-year mid-swaps. The offering will serve to further diversify Jefferies’ investor base and help expand Jefferies’ franchise in Europe.

Jefferies said its senior unsecured debt securities are rated Baa3/BBB/BBB- (Moody’s/Standard & Poor’s/Fitch).