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Niederer Kraft & Frey advises EFG International

January 2012

Niederer Kraft & Frey advises EFG International on exchange offer and first issue of Basel III compliant bonds with a PONV write-down feature by a non "Too Big To Fail" Bank in Europe

Niederer Kraft & Frey acted as Swiss counsel to EFG International in an exchange offer to proactively manage and strengthen the quality of its regulatory capital in light of the transition to the Basel III Framework by converting regulatory capital subject to a 10 year phase out into fully Basel III compliant regulatory capital. EFG International is a global private banking group headquartered in Zurich. EFG International AG's registered shares are listed on the SIX Swiss Exchange.

In the exchange offer, EFG International invited holders of the Euro 400 million EFG Fiduciary Certificates listed on the Luxembourg Stock Exchange to exchange Fiduciary Certificates into new Tier 2 Notes issued by its subsidiary EFG International (Guernsey) Limited and guaranteed by EFG International AG on a subordinated basis. The new Tier 2 Notes will include a so-called PONV write-down feature making them the first issue of this kind in Europe from a non "Too Big To Fail Bank".

The PONV write-down feature is a contractual provision where investors waive their rights under the Tier 2 Notes upon the "point of non-viability", i.e. (i) if the Swiss Finanical Market supervisory authority (FINMA) decides that a write-down of the Tier 2 Notes is necessary to maintain the viability of the Bank; or (ii) upon the decision to make an injection of public sector capital without which the Bank would become non-viable.

The NKF team was led by Philippe Weber, assisted by senior associates Daniel Bono, Patrik Peyer and Andrea Huber. Markus Kronauer, assisted by senior associate HansjĂĽrg Christoffel advised on tax aspects.


For more information please visit www.nkf.ch

 

 

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Niederer Kraft Frey AG

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    Der Finanzbereich ist auch in der Schweiz einer der am stärksten regulierten Wirtschaftzweige. Sich darin zurechtzufinden ist nicht immer einfach. Nachfolgende Ausführungen sollen dazu einen Einstieg vermitteln. Sie zeigen, dass die Schweiz im Gegensatz zum Ausland und abgesehen vom Bereich der kollektiven Kapitalanlagen und der Versicherungsprodukte, was die Zulässigkeit von grenzüberschreitend angebotenen Finanzdienstleistungen anbelangt, ein sehr liberales Regime kennt.
    - Niederer Kraft & Frey

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