Multitude evaluates potential issue of perpetual AT1 bonds
Summary
- Multitude announced that its subsidiary, Multitude Bank, is evaluating the issuance of EUR-denominated Floating Rate Perpetual AT1 Capital Bonds, with investor meetings starting October 26, 2026.
- The issuance aims to strengthen the bank's regulatory capital buffers and support loan book growth, optimizing the capital structure as the bank currently has no AT1 capital.
- The bank's capital ratios are above requirements, indicating the issuance is not driven by an acute capital need but rather by cost optimization, as CET1 capital is more expensive.
- Details such as the size and interest rate of the potential AT1 bonds are yet to be determined, and further information is expected in Multitude's upcoming Q3'26 webcast.
This content is generated by AI. You can give feedback on it in the Inderes forum.
Multitude announced that its wholly owned subsidiary, Multitude Bank, is evaluating a potential issue of EUR-denominated Floating Rate Perpetual Additional Tier 1 (AT1) Capital Bonds. The company has mandated Pareto Securities and DNB Carnegie Investment Bank to arrange fixed income investor meetings starting October 26, 2026. The news was not a surprise, as the company had already signaled (for example in its H1'26 webcast) that it would most likely issue an AT1 instrument in the near term.
A new AT1 instrument would strengthen the bank’s regulatory capital buffers and support continued loan book growth, as a growing loan book always ties up capital at bank level. We do not believe the issue is driven by an acute capital need, as the bank’s capital ratios are already above requirements. Rather, it is about optimizing the capital structure: the bank had no AT1 capital at the end of H1'26, meaning its Tier 1 requirement is currently covered entirely by CET1 capital, which is generally more expensive.
As the potential issue is still being evaluated and specific terms such as size and interest rate have yet to be set, we will include it in our estimates once the details are known. We note that while AT1 bonds strengthen regulatory capital without diluting shareholders, they typically carry a relatively high coupon. We expect to hear more about the rationale in Multitude’s upcoming Q3'26 webcast.