LONDON, July 6 (IFR) - Bankia has set guidance on its inaugural Additional Tier 1 bond, a no-grow €750m perpetual non-call five-year, at 6%-6.125%, according to a lead.
Books are over €3.5bn. Marketing started earlier on Thursday morning at coupon IPTs of 6.5% area.
The bond, expected B+ by S&P, will convert to equity if Bankia’s Common Equity Tier 1 ratio breaches 5.125%.
Citigroup and Morgan Stanley are structuring advisers and global coordinators. They are also joint leads alongside Bankia, Bank of America Merrill Lynch, Goldman Sachs and UBS.
Pricing is expected later today.
Reporting by Alice Gledhill, editing by Julian Baker