Morningstar

CaixaBank to Issue $588 Million in Convertible Financial Instruments

Provided by Dow Jones Sep 16, 2025, 6:07:00 AM

By Billy Gray

CaixaBank said it plans to issue financial instruments that will be convertible into ordinary shares totaling 500 million euros ($588.1 million).

The Spanish bank said late Monday that the so-called perpetual preferred securities will allow it to raise additional Tier 1 capital, a safety buffer popular among European lenders.

CaixaBank said it can opt to buy back the securities given certain conditions, and if the group's financial health deteriorates--specifically, if its common equity Tier 1 ratio falls below 5.125%--they might be converted into ordinary shares.

The bank said professional investors can buy the securities at face value and be paid 5.875% annual interest until Sept. 25, 2035, when the interest rate will begin to change every five years based on a market benchmark.

Write to Billy Gray at william.gray@wsj.com

(END) Dow Jones Newswires

September 16, 2025 02:07 ET (06:07 GMT)

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