Commerzbank, ABN Amro Wake Up Riskiest Bank-Bond Market
- Lenders both offering Additional Tier 1 notes in euros
- AT1 market was set for slowest quarter in seven years
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Commerzbank AG and ABN Amro Bank NV both got big order books for euro Additional Tier 1 notes as investors rushed to the high-coupon bonds following a recent dearth of deals.
ABN Amro’s 1 billion-euro ($1.1 billion) sale was more than 10 times subscribed pre-reconciliation, while Commerzbank got more than 9.5 billion euros of offers for a 1.25 billion-euro note. The two lenders are set to price the bonds, which are first callable in 2025, according to people familiar with the offerings, who asked not to be identified because they’re not authorized to speak about them