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November 30, 2011updated 04 Apr 2017 3:45pm

Julius Baer Group raises tier 2 capital

Julius Baer Group has placed CHF175 million of subordinated, unsecured debt with institutional and private investors after its book-building process.

By BBR Staff

The lower tier 2 bonds, with maturity date of December 23, 2021, carry a coupon of 4.50% and include an optional, one-time redemption call, on 23 December 2016. The issuing price of these bonds has been fixed at CHF5,000 and the amount generated though the sales of these bonds will be used for general corporate purposes.

Julius Baer Group has set a BIS total capital ratio target of at least 16% and a BIS tier 1 ratio target of at least 12%. As of the end of September, the Group’s BIS total capital ratio was 20.4% and the BIS tier 1 ratio 20.1%, making it one of the best capitalised banking groups.

As most of Julius Baer’s capital is in the form of tier 1 capital, it provided room for further enhancement of the Group’s capital structure.

The issuance of the new lower tier 2 capital, provides further diversification to the Group’s capital structure and improves its future financial flexibility.

 

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