BPER Banca raises €500M through perpetual bond
What's the deal? Italian lender BPER Banca has placed a €500M perpetual bond, bolstering its capital base. The Additional Tier 1 instrument carries a 6.2% coupon, pricing the bank's capital raise at a competitive rate in the current interest rate environment.
Why now? European banks have been tapping capital markets to strengthen their balance sheets and meet regulatory requirements. With bond market conditions relatively favourable, BPER seized the window to lock in perpetual funding — a move that reinforces its capital buffers without diluting shareholders.
What could go wrong? Perpetual bonds sit at the bottom of the capital structure, meaning investors bear higher risk. If BPER's financial health deteriorates, these instruments can be written down or converted. For the bank, the 6.2% coupon represents a permanent cost unless it exercises a future call option.
The signal: European banks continue to shore up capital through AT1 instruments, a sign that regulators and institutions alike are focused on resilience. The successful placement suggests investor appetite for bank debt remains solid, even for the riskiest tier of bank capital.
Read more: in.marketscreener.com
