FRANKFURT – Commerzbank AG (OTC:) has initiated a pre-stabilization phase for its upcoming issuance of green senior notes, with the potential for market stabilization activities to support the securities’ price post-launch. The Frankfurt-based financial institution announced on Tuesday that it may engage in transactions to maintain the market price of the securities at a higher level than might otherwise prevail.
The securities in question are non-preferred green senior notes, which are part of the bank’s eligible liabilities (MREL) and are expected to have a benchmark aggregate nominal amount. The offer terms include a maturity date of January 14, 2032, and a reset date or call redemption on January 14, 2031. The notes, which will be listed on the Frankfurt Stock Exchange’s Regulated Market, will be available in denominations of 100,000 euros.
As the appointed Stabilisation Coordinator, Commerzbank (ETR:) AG, alongside Stabilising Managers Natixis, Santander (BME:), and TD Securities, may over-allot the securities as permitted by law. The stabilization period began today and is anticipated to last no longer than 30 days following the proposed issue date of the securities.
Stabilization measures, if undertaken, are meant 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 initiated, it may end at any time.
The bank emphasized that this announcement is purely for informational purposes and should not be considered an invitation or offer to underwrite, subscribe for, 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 unlawful.
The green nature of the senior notes aligns with the increasing trend of financial products aimed at supporting environmentally sustainable initiatives. The move by Commerzbank AG reflects a growing commitment within the financial sector to address climate change and promote sustainability through investment products.
This information is based on a press release statement and provides investors with insight into Commerzbank AG’s latest financial product offering and its potential implications for the market.
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