IFR International - 20.10.2018

5NLIKEûEUROZONEûINSURANCEûPAPER ûITûISûNOTû
ELIGIBLEûFORûTHEû%#"SûCORPORATEûPURCHASEû
PROGRAMME ûTHOUGHûTHATûISûDUEûTOûBEûPHASEDû
OUTûATûYEAR
ENDûINûANYûCASE
h4HOSEûWHOûREALLYûCAREûAREûINVOLVED ûANDû
THOSEûWHOûWOULDûBEûLOOKINGûFORûMOREûVALUEû
AREûNOT vûSAIDûTHEûTHIRDûBANKER ûAûLEADûONû
:URICHûh)TûSTARTEDûRELATIVELYûTIGHT ûTHEYûHADûAû
SMALLûSIZEûOBJECTIVEûANDûACHIEVEDûTHATûATûAû
GOODûLEVELv
Citigroup ûCredit Agricole ûDeutsche Bank ANDû
HSBC WEREûJOINTûLEADS

COMMERZBANK THE LATEST BANK
TO JOIN GREEN MELEE

COMMERZBANKûBECAMEûTHEûLATESTû%UROPEANû
LENDERûTOûJOINûTHEûRAPIDLY
GROWINGû'REENû
MARKET ûBUTûTHEûCAUTIOUSûBP
BPûSTARTINGû
CONCESSIONûWASûINDICATIVEûOFûTHEûTRICKYû
BACKDROP ûEVENûFORûAûNO
GROWûõMûlVE
YEAR
"OOKRUNNERSûABN AMRO ûBBVA û
Commerzbank ûCredit AgricoleûANDûING STARTEDû
MARKETINGûTHEû"AA""""""!
ûRATEDûNOTEû
ATûMID
SWAPSûPLUSûBP
BPû7ITHûFAIRû
VALUEûINûTHEûLOWûS ûTHATûWASûENOUGHûTOû
ACCRUEûOVERûõMûINûORDERSûBYûTHEûlRSTû
UPDATEûANDûõBN
PLUSûBYûTHEûSECOND
4HEûBP
BPûCONCESSIONûWASûNOTû
INCONSISTENTûWITHûOTHERûRECENTûSENIORûTRADES û
THOUGHûAûBANKERûAWAYûSAIDûITûLOOKEDû
CONSERVATIVEûGIVENûTHATûTHEû'REENûFORMATû
ANDûCAPPEDûSIZEûNORMALLYûGIVEûISSUERSûAû
LEG
UP
h)TSûAûVERYûGENEROUSûSTART ûBUTûTHEYûAREû
VERYûPRAGMATICûANDûTHEYVEûGONEûWITHûAû
SENSIBLEûAPPROACHûINûTHEûCONTEXTûOFûBROADERû
MARKETûVOLATILITY vûHEûSAID
4ALKûWASûREVISEDûTOûPLUSûBP
BPûANDû
THEûSPREADûWASûLATERûSETûATûTHEûTIGHTûENDûONû
BOOKSûOFûOVERûõBN
'REENûlNANCINGûHASûBECOMEûAûMAJORû
POINTûOFûFOCUSûWITHINûTHEûBANKINGûSECTORû
""6!ûPRICEDûTHEûlRSTûSENIORûNON
PREFERREDû
'REENûBONDûFROMû3PAINûINû-AY ûFORûEXAMPLE û

WHILEû$:û"ANKû2AIFFEISENû"ANKû

)NTERNATIONALûANDû$."û"OLIGKREDITTûHAVEû

ALSOûALLûJOINEDûTHEûMARKETûTHISûYEAR

,ASTûYEARûSAWûTHEûEQUIVALENTûOFû

53BNûINû%3'

LABELLEDûBONDSûISSUEDû

ACROSSûALLûSECTORSûACCORDINGûTOû""6!û

RESEARCHû

ûNEARLYûDOUBLEûTHEûûVOLUME

7HILEûTHEûEARLYûWAVEûOFûISSUANCEûWASû

OFTENûVIEWEDûASûAûMEREûMARKETINGûEXERCISEû

REGULATIONûISûINCREASINGLYûBECOMINGûANû

INCENTIVE

h!LTHOUGHûTHEûGREENûSUPPORTINGûFACTORû

WHICHûWOULDûGIVEûENVIRONMENTALLY

FRIENDLYû

ASSETSûAûLOWERûRISKûWEIGHTINGûFREEINGûCAPITALû

FORûBANKSûNOWûLOOKSûTOûBEûOFFûTHEûAGENDAûAû

BROWNûPENALISINGûFACTORûAPPEARSûMOREû

LIKELYvûTHEû""6!ûANALYSTSûWROTEûINûAûNOTE

h;4HAT=ûCOULDûBEûIMPLEMENTEDûINûTHEûFORMû

OFûEITHERûAûDEDICATEDûSYSTEMICûRISKûBUFFERûORû

0ILLARûûREQUIREMENTSv

#OMMERZBANKûISûAIMINGûTOûBECOMEû

'ERMANYSûMOSTûSUSTAINABLEûCOMMERCIALû

BANKûPROVIDINGûõBNûlNANCINGûOFû

RENEWABLEûENERGYûSOURCESûTHROUGHûNEWû

BUSINESSûBYû

)TSûINAUGURALûBONDûWILLûlNANCEûLOANSûINû

THEûWINDûANDûSOLARûSECTORûANDûWILLûHELPûTOû

AVOIDûESTIMATEDû#/ûEMISSIONSûOFûAROUNDû

ûTONNESûPERûANNUMûACCORDINGûTOûTHEû

BANKSûINVESTORûPRESENTATION

4HEûBANKûHASûISSUEDûõBNûINûEUROûDEBTû

YEAR

TO

DATEûMOREûTHANûHALFûINûCOVEREDû

FORMATû)TûHASûISSUEDûONLYûONEûOTHERû3.0ûAû

õMû&EBRUARYûûNOTEûINû&EBRUARYûBUTû

MADEûITSûPREFERREDûSENIORûDEBUTûVIAûAû

õBNûDUAL

TRANCHEûTRADEûINû!UGUST

4HEûISSUERûPLANSûTOûROLLûOVERû3.0ûDEBTûATû

ITSûCURRENTûVOLUMEûTOûSUPPORTûTHEû3INGLEû!û

RATINGûOFûITSûPREFERREDûSENIORûDEBTû!SûOFû

$ECEMBERûûû#OMMERZBANKûFULlLLEDû

ITSûFUTUREû-2%,ûREQUIREMENTûWITHûANû-2%,û

RATIOûOFûûOFû27!

0REFERREDûSENIORûWILLûBEûUSEDûFORû

RElNANCINGûTOûSUPPORTûSTRATEGICûGROWTHûANDû

WILLûALSOûCOUNTûTOWARDSû-2%,ûTOûTHEûEXTENTû

PERMITTEDûBYûREGULATORS 

PRICE TARGET JUST OUT OF REACH

FOR AEGON RT1

AEGONSû2ESTRICTEDû4IERûûTRANSACTIONûISûONû

HOLDûASûTHEûBORROWERûWAITSûFORûAûRALLYûTOû

ENSUREûITûHITSûITSûPRICEûTARGETûAûPATTERNûOFû

BEHAVIOURûTHATûHASûBECOMEûFAMILIARûOVERû



4HEû$UTCHûINSURERûANNOUNCEDûTHEûEUROû

PERPETUALû.#ûBENCHMARKûRATEDû"AA

"""n""ûONû/CTOBERûûANDûHASûSINCEû

COMPLETEDûAûROADSHOW

4HEûMARKETûBACKDROPûREMAINSûVOLATILEû

ANDû!EGONûISûFOCUSEDûONûTHEûPRICEûOFûCAPITALû

2#)û"ANQUEûBECAMEûTHEûLATESTûBORROWERûTOû

PULLûAûDEALûLASTûWEEKûAûSTERLINGûlVE

YEARû

SENIORûTRANSACTIONûCITINGûADVERSEû

CONDITIONS

h7EûmAGGEDûTHEûMARKETûWASNTûFANTASTICû

BUTûTHEYûWANTEDûTOûHAVEûAûLOOKûANDûGETûTHEû

MARKETINGûANDûCREDITûWORKûDONEû4HEYûWEREû

QUITEûSANGUINEû;ANDûSAID=ûIFûWEûCANTûGETûTHEû

LEVELûWEûWONTûGOvûSAIDûAûSYNDICATEûBANKERû

ONû!EGONSûDEAL

h7EREûINûAûHOLDINGûPATTERNûFORûNOWûASû

WEREûNOTûGETTINGûTOûTHEIRûTARGETû;BUT=ûWEREû

NOTûMILESûAWAYv

!32û.EDERLANDSûõMûû0.#û

RATEDû""ûBYû30    ûnûONEûOFûTHEûBESTû

COMPARABLESûnûHASûWIDENEDûOVERû/CTOBERû

FROMûûTOûûLASTû&RIDAYû#.0û

!SSURANCESûõMûû0.#û

SIMILARLYûRATEDûTOû!EGONSûPROPOSEDû

TRANSACTIONûATû"AA"""nûHASûWIDENEDûFROMû

AROUNDûûTOûûOVERûTHATûPERIOD

)TûISûAûMONTHûSINCEûTHEûLASTûEUROû

SUBORDINATEDûBENCHMARKûLEAVINGûAûQUESTIONû

MARKûOVERûTHEûNEWûISSUEûPREMIUMûREQUIREDû

INûTHISûSECTOR

!EGONSûPRICEûTARGETûISûDICTATEDûINûPARTûBYû

THEûCOUPONSûONûTHEûSTACKûOFûGRANDFATHEREDû

SECURITIESûITûNEEDSûTOûRElNANCEûINûTHEû

COMINGûYEARSû!BOUTûûOFûTHOSEûSECURITIESû

HAVEûANûAVERAGEûlXEDûCOUPONûOFûAROUNDûû

WHILEûTHEûREMAINDERûHASûANûAVERAGEûRESETû

COUPONûOFûAROUNDû

)TûMUSTûALSOûTAKEûINTOûACCOUNTûRECENTû

$UTCHûTAXûCHANGESûTHATûMEANûCOUPONSûONû

THEûNEWû24ûUNLIKEûITSûGRANDFATHEREDû

SECURITIESûWOULDûNOTûBEûTAXûDEDUCTIBLE

4HATûINûEFFECTûPUSHESûUPûTHEûCOSTûOFû

ISSUANCEûIFûONLYûMARGINALLYû#REDIT3IGHTSû

ESTIMATEDûTHEûADDITIONALûTAXûCHARGEûINûTHEû

CASEûOFû!32Sû24ûATûõMûIMMATERIALû

WHENûCOMPAREDûWITHûITSûõMûNETûPROlTûINû



NO PRESSURE

4HEûFATEûOFûSUB

BENCHMARKû!4SûFROMû6ANû

,ANSCHOTûANDû6OLKSBANKû7IENûBOTHûPULLEDû

INûRECENTûWEEKSûHASûCOMEûASûAûWARNINGûSHOTû

FORûOTHERûBORROWERS

h7ITHûEVERYTHINGûTHATSûGOINGûONûITSû

GIVINGû;INVESTORS=ûMOREûCAUSEûTOûTHINKûANDû

YOUûREALLYûNEEDûTOûTESTûWHEREûTHEIRû

ALL FINANCIAL INSTITUTION BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share
bank or group issues €(m) (%)
1 BNP Paribas 67 15,587.31 9.2
2 UBS 37 14,321.70 8.5
3 HSBC 56 12,031.67 7.1
4 SG 39 11,978.42 7.1
5 Deutsche Bank 48 10,510.23 6.2
6 Natixis 30 9,267.94 5.5
7 JP Morgan 45 7,863.98 4.7
8 Credit Agricole 32 7,815.45 4.6
9 Citigroup 34 6,298.89 3.7
10 Morgan Stanley 31 6,244.72 3.7
Total 279 169,030.57
Including banks, insurance companies and finance companies. Excluding
equity-related and covered bonds. Excluding publicly owned institutions.

Source: Refinitiv SDC code: N11

ALL SUBORDINATED FINANCIAL INSTITUTION

BONDS (ALL CURRENCIES)

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

1 HSBC 33 6,394.25 9.1

2 Barclays 17 5,223.26 7.5

3 UBS 18 4,929.12 7.0

4 JP Morgan 29 4,571.96 6.5

5 BNP Paribas 22 3,934.72 5.6

6 Citigroup 24 3,835.11 5.5

7 Morgan Stanley 21 3,830.29 5.5

8 Goldman Sachs 16 3,671.70 5.2

9 Credit Suisse 15 3,420.75 4.9

10 BAML 20 3,404.02 4.9

Total 108 70,019.45

Source: Refinitiv SDC code: J3a