Hypo Alpe-Adria-Bank International Ag, the nationalized Austrian lender, wants to buy back as much as 225 million euros ($303 million) of securities for as little as 31.5 percent of face value to help strengthen core capital.
It’s proposing to redeem preference shares whose qualification as core capital is being phased out by bank regulators, the Klagenfurt-based lender said in a statement. The offer runs until March 22.
Hypo Alpe is offering to buy back a series of preferred securities for 33.5 percent of par and another for 31.5 percent, according to the statement. The lender issued 75 million euros of the first security and 150 million euros of the second, it said in the statement.
The proposal is “part of Hypo Alpe’s ongoing capital management, the aim of which is to enhance Hypo Alpe’s capital position by increasing common equity,” it said. The lender “intends to sell or transfer the preferred securities purchased by Hypo Alpe to the relevant issuer for cancellation,” according to the statement.
Hypo Alpe’s offer follows similar moves at Raiffeisen Bank International AG (RBI), which on Feb. 23 offered to buy back 500 million euros, and Erste Group Bank AG, which proposed to buy back as much as 1.3 billion euros of securities on Feb. 17.
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