Bankinter (BME:BKT) has put up for sale on Monday an issue of perpetual securities eventually convertible into new shares of the bank, the so-called “coconuts”, for an amount of up to 300 million euros.
As reported by the entity to the supervisor of the Spanish stock market, the CNMV, the securities will be issued without preferential subscription rights and will only be intended for qualified investors, as is usual in this type of capital issuance.
The securities will count as additional level 1 capital of the Bankinter Group in accordance with current solvency regulations, and will foreseeably have an exit window for investors, after 5 and a half years.
Once the securities have been issued, the entity will apply for admission to trading on the Global Exchange Market of the Irish Stock Exchange.
Bankinter made another issue of this type of securities on April 29, 2016, for an amount of 200 million euros and a coupon of 8.6% and with a demand that exceeded the amount of the offer by 6.5 times.
An additional tier 1 capital issue (AT1, securities known as “cocos”) is a hybrid issue, that is, it has debt characteristics, such as the payment of interest to the investor, and also capital, the bank explained at the time.