Caixabank issues €1 billion worth of perpetual convertible preference shares at 6.250% p.a. until 24 January 2033

CaixaBank nuevito

Renta 4 | The entity has approved the issue of perpetual preference shares convertible into newly issued shares of CaixaBank (CoCos), excluding pre-emptive subscription rights, in the amount of €1,000 million. The issue will be carried out at par and the remuneration, the payment of which is discretionary and subject to certain conditions, has been set at 6.250% per annum until 24 January 2033. Thereafter, it will be reviewed every five years by applying a margin of 393.5 bp to the applicable 5-year Mid Swap Rate.

The CoCos are perpetual, notwithstanding which they may be redeemed in certain circumstances at CaixaBank’s option and, in any event, will be converted into newly issued ordinary shares of the entity if CaixaBank or the CaixaBank Group has a CET1.

The preference shares will be eligible as Additional Tier 1 capital.

Assessment: News with no expected impact on share price. With this issue, the Tier 1 capital ratio would be 14.7% 2025 R4e. In terms of cost, the AT1 2025 R4e would rise to €270m net (vs. €226m previous estimate), but with no significant impact on EPS. OVERWEIGHT. P.O. €6.74/share.

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