Cleary Gottlieb acted as deal counsel in a CMT rate-linked offering by BNP Paribas of $1.25 billion perpetual fixed-rate resettable additional Tier 1 notes.
The notes will count toward the bank’s regulatory capital requirements. The notes, which have no fixed maturity, will bear interest at a rate of 4.625% per annum from their date of issuance until January 12, 2027, the first call date. The rate of interest will reset on the first call date and each reset date thereafter at a rate equal to the then-applicable CMT rate plus a margin of 3.196%.
The notes were placed in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S and are listed on Euronext Paris. The transaction priced on January 5, 2022, and will close on January 12, 2022. BNP Paribas Securities Corp. acted as sole bookrunner and global coordinator, leading an underwriting syndicate comprised of several international investment banks acting as joint lead managers and co-managers.