Allen & Overy announced today that it advised J.P. Morgan as the sole lead manager on approx. CZK 2 billion domestic subordinated Tier 2 capital bond issuance by MONETA Money Bank. This is the first subordinated Tier 2 capital bond issuance by a Czech bank under a base prospectus approved following the new Prospectus Regulation entered into force and may serve as a benchmark transaction which others can follow.
The base prospectus enables to issue a full range of debt instruments, including mortgage covered bonds (in strict compliance with the new Czech covered bond legal framework), senior preferred bonds, senior non-preferred bonds (which may be issued as MREL eligible instruments), subordinated preferred bonds and subordinated Tier 2 bonds (issued as Tier 2 capital accountable instruments). All the instruments may be issued, subject to compliance with applicable rules and regulations, to retail as well as institutional investors.
This transaction showcased A&O cross-border and English law capabilities due to the fact that part of the documentation was governed by English law and the transaction as such was to a large extent driven by international debt capital market standards.
The transaction was led by counsel Petr Vybíral, who was assisted by associate Tomáš Kafka. The A&O London team comprised of partners Peter Crossan, Tom Grant and associate Michael Hossack.