Banks Raise New Cash as Pricey AT1 Bonds Approach Call Date (1)

Spain’s Bankinter SA and Luxembourg-based Quintet Private Bank Europe SA are looking to sell new Additional Tier 1 bonds Wednesday, with both facing decisions to redeem expensive older debt.

The Spanish lender is looking to raise €500 million ($575 million), according to a person familiar with the matter who asked not to be identified. The bank received more than €4.5 billion of orders and set the coupon at 6%. Quintet is offering a €140 million issue with the coupon set at 7% following more than €575 million of orders.

Quintet’s only outstanding AT1 bond is callable in October and has ...