Deutsche Pfandbriefbank AG has decided not to exercise its option to call the "Euro 300,000,000 Perpetual Non-Cumulative Fixed to Reset Rate Additional Tier 1 Notes of 2018", ISIN XS1808862657, (the "AT1 Notes") on 28 April 2023.
Deutsche Pfandbriefbank AG has decided not to exercise its option to call the AT1 Notes. The AT1 Notes with a volume of € 300 million and a coupon of 5.75% have been issued by Deutsche Pfandbriefbank AG in April 2018. The outstanding AT1 Notes could have been called for the first time on 28 April 2023. The decision reflects the Bank's strategy to take termination decisions of securities not only on an economic basis but also taking into account market conditions as well as the current and future regulatory value of the respective capital instruments.
The AT1 Notes are now callable every five years, next on 28 April 2028. Deutsche Pfandbriefbank AG plans to fully service the coupon of the AT1 Notes due on 28 April 2023. For the new interest period starting on 28 April 2023, a coupon based on the then applicable reference rate (five-year euro mid-swap rate) plus 5.383% per annum will apply, as set out in the terms and conditions of the AT1 Notes. Due to the fixing of the credit spread (5.383%) upon issuance of the AT1 Notes in 2018 and the hedging of the variable interest rate risk, the total refinancing costs of Deutsche Pfandbriefbank AG for the AT1 Notes remain unchanged.