Slaughter and May advised abrdn plc on the issuance of £210 million AT1 notes

Slaughter and May advised abrdn plc (the “Issuer”) on its issuance (the “Issuance”) of £210 million 5.250 per cent. Fixed Rate Reset Perpetual Subordinated Contingent Convertible Notes (the “Notes”). The Notes will be admitted to trading on the International Securities Market of the London Stock Exchange.

The Notes are intended to qualify as additional tier 1 capital under the prudential regime to which the Issuer is subject. The Issuer’s regulatory capital position is currently determined under UK CRD IV but, from 1 January 2022, the Issuer will be subject to the new prudential regime for investment firms (the “IFPR”). The Notes are convertible into ordinary shares of the Issuer upon the occurrence of a Conversion Trigger Event, which is based on the Group’s common equity tier 1 capital ratio as it is determined by UK CRD IV prior to 1 January 2022 or the IFPR rules after 1 January 2022. This Issuance represents the first issuance by an investment manager of additional tier 1 capital, and the first issuance by the Issuer in contemplation of the new IFPR rules.

The proceeds of the Issuance will be used for general working capital purposes, including any acquisitions made by the Issuer. The Notes are to be rated Baa2 by Moody’s and BBB- S&P.

Barclays, HSBC, J.P. Morgan and Merrill Lynch acted as Joint Lead Managers in connection with the Issuance.

Financing
Financial Regulation
Nick Bonsall Partner
David Kasal Associate
Tax
William Watson Senior Consultant
Victoria Hine Associate