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LONDON - Achmea Bank N.V. is set to issue EUR 500 million in fixed rate notes due in 2032, with Rabobank International London acting as the coordinating stabilization manager. The stabilization period for the securities is expected to begin today and may extend until May 26, 2025, according to a pre-stabilization announcement.
The stabilization process, which is a common practice in securities offerings, is intended to support the market price of the notes post-issuance. Rabobank and other stabilizing managers, including ABN AMRO (AS:ABNd) Bank N.V., Barclays, BBVA (BME:BBVA), Deutsche Bank (ETR:DBKGn), and LBBW, have the option to over-allot or conduct transactions to maintain the notes’ price at a higher level than might otherwise prevail in the market. However, there is no guarantee that stabilization activities will take place, and if initiated, they can be discontinued at any time.
The details regarding the reoffer price and other terms of the offer are yet to be confirmed. The announcement emphasized that any stabilization action or over-allotment will be carried out in compliance with all applicable laws and regulations.
The notes are not intended for distribution in the United States or to any U.S. persons, as they have not been registered under the United States Securities Act of 1933 and are subject to restrictions on sale and transferability. The announcement also specifies that the offer and the notes are directed at persons with professional investment experience and high net worth individuals in the United Kingdom (TADAWUL:4280), as well as qualified investors in the European Economic Area.
This new issuance by Achmea Bank N.V. and the subsequent stabilization measures are being closely watched by investors and market participants for potential impacts on the fixed income market. The information contained in this article is based on a press release statement.
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