REG - Vanquis Banking Grp - Issuance of AT1 Notes and Tender of Tier 2 Notes

Vanquis BankingAnnouncement

01/10/2025 11:45

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RNS Number : 6461B  Vanquis Banking Group PLC  01 October 2025

 

Issuance of inaugural Additional Tier 1 (AT1) Notes and Tender of Tier 2 Notes

 

London - 1 October 2025 - Vanquis Banking Group plc ('the Group') has
successfully issued £60m of Fixed Rate Reset Perpetual Subordinated
Contingent Convertible Notes ('AT1 Notes') (ISIN: XS3192214339) at a coupon of
10.875% and has tendered £58.5m of its Fixed Rate Reset Subordinated Tier 2
Notes due 2032 ('Tier 2 Notes') (ISIN: XS2397348801).

 

The transaction aligns with the Group's stated strategy to further optimise
its capital structure by replacing Tier 2 capital that is not eligible to meet
the Group's total capital requirement.  It also provides a more efficient way
to meet part of the Group's Tier 1 capital requirement, previously met
exclusively with Common Equity Tier 1 (CET1) capital.

 

The CET1 capital released through this transaction will be used for general
corporate purposes, including continuing to grow gross customer
interest-earning balances in the business.

 

Settlement of the AT1 Notes is expected to occur today and will be listed on
the International Securities Market of the London Stock Exchange.  Coupon
payments will be made semi-annually, on 1 May and 1 November throughout the
life of the instrument, commencing on 1 November 2025.  The instrument has a
first reset date on 1 May 2031, and it is first callable any time in the
six-months prior to and including the reset date.

 

Settlement of the tender offer is expected to occur on 2 October 2025.  Upon
settlement, the tendered Tier 2 Notes will be cancelled, leaving £141.5m
outstanding.

 

Chief Financial Officer, Dave Watts, and Group Treasurer, Steve Grainger, will
present further details on the transaction via Investor Meet Company at 14:00
BST on Friday, 17 October 2025.

 

Questions can be submitted pre-event via your Investor Meet Company dashboard
up until Thursday, 14 October 2025 at 09:00 BST, or at any time during the
live presentation.

 

Investors can sign up to Investor Meet Company for free and register to
meet Vanquis Banking Group Plc via the following link:

https://www.investormeetcompany.com/vanquis-banking-group-plc/register-investor
(https://url.avanan.click/v2/r02/___https:/www.investormeetcompany.com/vanquis-banking-group-plc/register-investor___.YXAxZTpzaG9yZWNhcDphOm86ZTY0MWY4ZGJlNjI0OTU4MDAyNmNiNTJiNWVhOTNjNzM6Nzo4ZThmOjg4MzcyMTI0MzNiNDFiMjcwZDM3OWVlYzMwMzYwNDg4MGIzNDhiYWY3ZmI1Njc2MWMxZmRiMGY5NjRiYzQ5NmU6cDpUOk4)

Investors who already follow Vanquis Banking Group Plc on the Investor Meet
Company platform will automatically be invited.

 

The presentation is open to all existing and potential shareholders.

 

The Group intends to release its 3Q25 Trading Statement on Wednesday, 5
November 2025 at 07:00 BST.

 

 

Enquiries

 

Analysts and shareholders

James Cranstoun, Head of Investor Relations

james.cranstoun@vanquis.com

+44 (0) 7766 937 406

 

Media

Scott Mowbray, Head of External Communications

scott.mowbray@vanquis.com

+44 (0) 7834 843 384

 

 

This announcement is not for public release, publication or distribution,
directly or indirectly, in or into the United States (including its
territories and possessions, any State of the United States and the District
of Columbia) or any other jurisdiction where to do so would be unlawful. This
announcement does not constitute or form a part of any offer of, or
solicitation to purchase or subscribe for, any securities in the United States
or any other jurisdiction.

 

The AT1 Notes are being offered and sold pursuant to an exemption from the
registration requirements of the U.S. Securities Act, outside the United
States in offshore transactions, in reliance on, and in compliance with
Regulation S under the U.S. Securities Act.

 

Forward looking statements

 

This report may contain certain "forward looking statements" regarding the
financial position, business strategy or plans for future operations of
Vanquis Banking Group. All statements other than statements of historical fact
included in this document may be forward looking statements. Forward looking
statements also often use words such as "believe", "expect", "estimate",
"intend", "anticipate" and words of a similar meaning. By their nature,
forward looking statements involve risk and uncertainty that could cause
actual results to differ from those suggested by them. Much of the risk and
uncertainty relates to factors that are beyond Vanquis Banking Group's ability
to control or estimate precisely, such as future market conditions and the
behaviours of other market participants, and therefore undue reliance should
not be placed on such statements which speak only as at the date of this
report. Vanquis Banking Group does not assume any obligation to, and does not
intend to, revise or update these forward-looking statements, except as
required pursuant to applicable law or regulation. No statement in this
announcement is intended as a profit forecast or estimate for any period. No
statement in this announcement should be interpreted to indicate a particular
level of profit and, as a consequence, it should not be possible to derive a
profit figure for any future period from this report.

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