FRANKFURT – Commerzbank AG (OTC:) has initiated a pre-stabilization phase for its upcoming green senior bond issuance, with the potential for market stabilization activities to support the price of the securities after launch. The Frankfurt-based financial institution announced on Tuesday that it may engage in transactions to maintain the market price of securities at a higher level than would otherwise prevail.
The securities in question are non-preferred green senior bonds, which are part of the bank’s eligible liabilities (MREL) and are expected to have a reference total nominal amount. The terms of the offer include a maturity date of January 14, 2032 and a reset or call date of January 14, 2031. The bonds, which will be listed on the Regulated Market of the Frankfurt Stock Exchange, will be available in denominations of EUR 100,000.
As the designated Stabilizing Coordinator, Commerzbank (ETR:) AG, together with Stabilizing Managers Natixis, Santander (BME:) and TD Securities, may redistribute securities as permitted by law. The stabilization period began today and is expected to last no longer than 30 days after the proposed securities issue date.
Stabilization measures, if taken, are intended to support the market price during the stabilization period and may include over-allotment or other transactions. However, the bank clarified that there is no certainty that stabilization will occur, and if it starts, it can end at any time.
The Bank emphasized that this announcement is for informational purposes only and should not be considered an invitation or offer to take over, subscribe or otherwise acquire or dispose of any securities of the issuer in any jurisdiction. Moreover, the announcement is not for distribution in the United States or any jurisdiction where such distribution would be illegal.
The green nature of older banknotes is aligned with the growing trend of financial products aimed at supporting environmentally sustainable initiatives. Commerzbank AG’s move reflects a growing commitment within the financial sector to addressing climate change and promoting sustainability through investment products.
This information is based on a press release and provides investors with an insight into Commerzbank AG’s latest offering of financial products and their potential market implications.
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