Close Brothers Group plc has successfully issued its inaugural Fixed Rate Resetting Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities in a £200 million transaction. The issuance attracted £1.48 billion of interest from institutional investors and private banks in the UK, Europe, North America, and Asia. The transaction is in line with the group's capital management framework and strategy, optimizing its capital structure and providing further flexibility to grow the business. The issuance strengthened the group's Total capital ratio by approximately 200 basis points to 16.6% on a pro-forma basis as of October 31, 2023.
The securities carry a coupon of 11.125% and are payable semi-annually on May 29 and November 29 of each year, starting from May 29, 2024. The securities have a first reset date on May 29, 2029, and include a conversion trigger of 7.0% Common Equity Tier 1 capital ratio. They are callable any time in the six-month period prior to and including the first reset date or on each reset date occurring every five years thereafter. The instrument has been assigned a Moody's Baa2 instrument rating.
Close Brothers Group plc has made an application for the securities to be admitted to trading on the International Securities Market of the London Stock Exchange.
Close Brothers Group is a leading UK merchant banking group providing lending, deposit taking, wealth management services, and securities trading. The group employs approximately 4,000 people and is listed on the London Stock Exchange as a constituent of the FTSE 250.