Issuance of AT1 Notes and Tender of Tier 2 Notes
Issued £60m AT1 Notes at 10.875% coupon and tendered £58.5m of Tier 2 Notes due 2032.
- AT1 Notes issued £60m
- AT1 coupon 10.875%
- Tier 2 Notes tendered £58.5m
- Tier 2 Notes outstanding after tender £141.5m
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London - 1 October 2025 - Vanquis Banking Group plc ('the Group') has successfully issued £60m of Fixed Rate Reset Perpetual Subordinated Contingent Convertible Notes ('AT1 Notes') (ISIN: XS3192214339) at a coupon of 10.875% and has tendered £58.5m of its Fixed Rate Reset Subordinated Tier 2 Notes due 2032 ('Tier 2 Notes') (ISIN: XS2397348801).
The transaction aligns with the Group's stated strategy to further optimise its capital structure by replacing Tier 2 capital that is not eligible to meet the Group's total capital requirement. It also provides a more efficient way to meet part of the Group's Tier 1 capital requirement, previously met exclusively with Common Equity Tier 1 (CET1) capital.
The CET1 capital released through this transaction will be used for general corporate purposes, including continuing to grow gross customer interest-earning balances in the business.
Settlement of the AT1 Notes is expected to occur today and will be listed on the International Securities Market of the London Stock Exchange. Coupon payments will be made semi-annually, on 1 May and 1 November throughout the life of the instrument, commencing on 1 November 2025. The instrument has a first reset date on 1 May 2031, and it is first callable any time in the six-months prior to and including the reset date.
Settlement of the tender offer is expected to occur on 2 October 2025. Upon settlement, the tendered Tier 2 Notes will be cancelled, leaving £141.5m outstanding.
Chief Financial Officer, Dave Watts, and Group Treasurer, Steve Grainger, will present further details on the transaction via Investor Meet Company at 14:00 BST on Friday, 17 October 2025.
Questions can be submitted pre-event via your Investor Meet Company dashboard up until Thursday, 14 October 2025 at 09:00 BST, or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and register to meet Vanquis Banking Group Plc via the following link:
The presentation is open to all existing and potential shareholders.
The Group intends to release its 3Q25 Trading Statement on Wednesday, 5 November 2025 at 07:00 BST.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.