Avarda Bank issues SEK 250 million in AT1 bonds to refinance debt
Avarda Bank AB has announced the issuance of SEK 250 million in Additional Tier 1 capital instruments to bolster its capital structure and retire existing debt.
Avarda Bank AB (publ) has successfully issued SEK 250 million in Additional Tier 1 (AT1) capital bonds. The instruments, which bear a floating interest rate of 3-month Stibor plus 450 basis points, are scheduled for settlement on October 29, 2026, with an initial call date set for October 29, 2031.
The capital raised will be utilized for general corporate purposes, specifically to facilitate the early redemption of the bank's outstanding SEK 100 million AT1 bonds, identified by ISIN SE0017085244. This move allows the firm to adjust its capital stack amidst current market conditions.
The newly issued securities are expected to be listed for public trading on the Nasdaq corporate bond list. This refinancing strategy is part of the bank's broader management of its regulatory capital requirements.