The AT1 Notes (ISIN DE000A1TNDK2) with a volume of the €300 million and a current coupon of 7.321 per cent were issued in November 2014. The Bank would have been able to call the outstanding AT1 Notes on the first call date of 30 April 2020, followed by annual call rights. As in previous years, Aareal Bank has decided not to exercise its call right this year.
The decision reflects the Bank's strategy of evaluating all call decisions regarding securities, incorporating considerations of market conditions as well as the current and future regulatory value of the respective capital instruments. Aareal Bank intends to service the AT1 Notes, in full, on the due date of 30 April 2023. As stipulated in the Terms and Conditions of the Notes, the coupon for the new interest period starting from May 2023 will be the prevailing reference interest rate (the one-year euro mid-market swap rate) plus 7.18 per cent per annum.
