WBAG:EBSBanks
Erste Group Bank (WBAG:EBS) Valuation Check After €750 Million Tier 2 Capital Issuance
Why Erste Group Bank’s new Tier 2 issue matters for equity investors
Erste Group Bank (WBAG:EBS) has just completed a €750 million fixed to floating rate subordinated Tier 2 notes issue, a move that directly affects its capital structure and, by extension, how you might think about the equity.
The notes are callable, subordinated and carry a variable coupon, sitting below senior debt but above common equity in the capital stack. That position can influence loss absorption, regulatory capital...