Miriam Mukuru


Raiffeisen Bank International reportedly pulled its new AT1 bonds from issuance after a media report raised concerns about the bank's links to Russia, CreditSights said in a note.

The concerns came in relation to the company's acquisition of Austrian firm Strabag, causing a negative reaction from investors, the financial research firm said.

Raiffeisen Bank launched new AT1 bonds on Wednesday, before allegedly pulling them from the market, CreditSights said.

"The concern reported is that a sanctioned individual would benefit from the transaction [Strabag acquisition deal], and that events might lead to penalties for RBI being imposed by U.S. authorities," it said.

"RBI has diligently verified the compliance of the Strabag transaction with all applicable sanctions, prior to signing and announcing the transaction in December 2023," Raiffeisen Bank said in an emailed statement.

A Raiffeisen Bank spokesperson declined to comment on the new AT1 bonds being pulled from the market.

"The new AT1 was a high-profile deal for RBI, associated with an above-par tender offer" CreditSights said.


Write to Miriam Mukuru at miriam.mukuru@wsj.com


(END) Dow Jones Newswires

03-20-24 1411ET