Barclays scores a TON

Barclays Capital last month widened the expanse of the subordinated bank market with the introduction of Tier One Notes (TONs), a new form of core tier-one capital.

Barclays Bank launched a £400m perpetual issue callable in 2032 with a semi-annual 6% coupon on June 14. Bonds were re-offered at Libor plus 120bps, says Avery, a premium of only 10bps-15bps over where a new Barclay’s sterling RCI would be expected to price.

“TONs are the only tier-one structure in the market,” says Avery.

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