Wiesbaden, 20 March 2020 – Aareal Bank AG decided today that it will not exercise its option to call the "Euro 300,000,000 Perpetual Non-Cumulative Fixed to Reset Rate Additional Tier 1 Notes of 2014" (ISIN: DE000A1TNDK2, German Securities ID: A1TNDK – the "AT 1 Notes"). Aareal Bank issued the €300 million AT1 Notes in November 2014, with a 7.625 per cent coupon. The Bank would have been able to call the outstanding AT1 Notes on the first call date on 30 April 2020. The decision reflects the Bank's strategy of evaluating all call decisions regarding securities, incorporating economic aspects alongside considerations of market conditions as well as the current and future regulatory value of the respective capital instruments.
Aareal Bank now has an annual right to call the AT1 Notes, with the next possible call date being 30 April 2021. Aareal Bank plans to service the AT1 Notes, in full, on the due date of 30 April 2020. As stipulated in the terms and conditions of the AT1 Notes, the coupon for the new interest period starting from May 2020 will be the then-prevailing reference interest rate (the one-year euro mid-market swap rate) plus 7.18 per cent per annum.