ING: redemption of 'AT1' perpetual bonds

(CercleFinance.com) - ING announced on Friday that it will redeem $1.
25 billion worth of Additional Tier 1 (AT1) convertible bonds in order to optimize its capital structure.

The Dutch banking group says that the redemption, which will take effect on April 16, its scheduled call date, concerns its bonds with a 6.5% coupon.

Additional Tier 1" or "CoCo" bonds, created in the wake of the 2008 financial crisis, automatically convert into ordinary shares if the issuing bank's capital level falls below a certain threshold.

Issuers generally endeavor to refinance their CoCos whenever they can, sometimes up to six or 12 months before the next scheduled redemption date.

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