Swedbank AB (publ) issued a $500 million Additional Tier 1 bond with a 6% coupon, it said Dec. 9.

The notes will mandatorily convert into equity if the bank's regulatory capital declines past a certain level, which it did not specify. The perpetual notes were issued at par.

The 6% coupon will be paid through March 17, 2022, after which the notes will carry a coupon equaling the five-year U.S. dollar swap rate plus 4.106%, Cbonds reported Dec. 12.

BNP Paribas, Citigroup, HSBC, JP Morgan, Swedbank and UBS served as book runners for the issuance, Cbonds added.