Belgian-Dutch financial services group Fortis said on Wednesday it would launch 2 billion euros ($2.73 billion) worth of conditional capital exchangeable notes.
Fortis said the notes represented senior unsecured obligations of the issuers -- various parts of Fortis -- and that it expected them to carry a coupon of three-month EURIBOR +15 to 20 basis points payable quarterly in arrears.
The notes must be exchanged into mandatory convertible securities after completion of a preferential rights issue to existing holders of Fortis shares.
The rights issue is being made to fund Fortis's proposed acquisition of parts of Dutch peer ABN Amro.
Fortis said if the rights issue does not take place, then the notes will redeem at par on Aug. 4 2008.