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)
Keywords: RBI/DEBT EXCHANGE