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Oct 3 2019, 08:25 IST/BST
AIB Group
AT1 issue supports capital return discussions
DAVY VIEW
AIB’s issue of a €500m AT1 is earlier than expected given the outstanding OpCo AT1’s call date is not until Q4 2020. We view the timing of the deal as supportive of AIB’s regulatory discussions around the return of excess capital following the achievement of the c.5% non-performing exposure (NPE) milestone by the end of 2019. Separately, media reports indicate that AIB is to open a voluntary severance programme, which will play an important role in overall costs realignment.
