RBI seeks to optimise capital structure with sub exchange

By Helene Durand

LONDON, Oct 10 (IFR) - Raiffeisen Bank Internationalannounced plans to optimise its capital structure on Wednesdayby asking investors to exchange an Upper Tier 2 note callablelater this month into a new longer-dated Tier 2 security.

However, RBI's offer came at the same time as a warning toinvestors that it would decide whether to call the 5.77% EUR600mbond (callable on October 29) with reference to prevailingregulatory, economic, and market conditions.

RBI said it wants to exchange any and all of the outstandingUpper Tier 2 bond for a new 10.5 non-call 5-5 year Tier 2 with a5.875% coupon, on a par-for-par basis.

The new notes will mature on April 27 2023 and have aone-time call on April 27 2018. The 5.875% coupon on the newnotes will be non-deferrable and will have a one-time reset atmid-swaps plus 484bp.

The offer expires on October 23 and will be settled onOctober 29. Deutsche Bank, Bank of America Merrill Lynch, RBIare handling the exercise.

(Reporting by Helene Durand; editing by Alex Chambers)

((helene.durand@thomsonreuters.com)(+44 207 542 3469)(ReutersMessaging: helene.durand.reuters.com@reuters.net))