Brussels, London and Luxemburg, 11 April 2018 – Euroclear Investments SA, today announces that it has successfully completed a new, Euro-denominated dual-tranche senior and corporate hybrid transaction.
The issuance by Euroclear Investments SA, a group holding company, comprised a €300 million 12-year Senior tranche (rated AA/AA- by Fitch and Standard and Poor’s) and a €400 million 30-year Corporate Hybrid tranche with the first call date at year 10 (rated A+/A by Fitch and Standard and Poor’s). The coupons are 1.50% and 2.625% for the Senior and Corporate Hybrid tranche respectively. The transaction was completed successfully and was three times subscribed. Placement was made across a broad range of qualified investors.
The net proceeds of the transaction further strengthen Euroclear’s robust financial position in the context of the Bank Recovery and Resolution Directive (BRRD) applicable mainly to the Issuer’s main subsidiaries including, without limitation, Euroclear Bank SA and Euroclear SA/NV. The BRRD requires banks to meet a minimum requirement for own funds and eligible liabilities (MREL) so as to be able to absorb losses and restore their capital position, allowing them to continuously perform their critical economic functions in the event of a crisis. The proceeds of the transaction are expected to be down-streamed to Euroclear Bank and Euroclear SA/NV to reinforce their recovery capacity, in the form of instruments that include MREL and other loss absorption features.
Citi was sole structuring advisor and global coordinator for the transaction and joint lead manager with MUFG Securities EMEA plc.