Why Antwerp Exchange Bank is the world’s largest bank
Antwerper Exchange Bank, the world top 10 biggest banks, announced Monday that it has agreed to take over the reins of the southern exchange’s €1.2 trillion ($1.9 trillion) eurobond issuance.
The €1,700 billion in the bond issued to the Southern Exchange will be issued in a series of joint purchases by the three banks.
The bonds will be purchased in a combination of debt and equity, with the first of the purchases occurring on Oct. 6 and the second on Nov. 4.
The three banks will use the proceeds from the bond issuance to cover the cost of capital expansion, which has been a challenge for the region’s third largest bank, the Dutch bank ABN Amro.
The new debt financing will allow the bank to make a profit on its debt, while also giving the region access to a pool of capital that will enable the bank and its regional headquarters to meet their financing obligations.
The bank will also be able to borrow more money in the future, a move that will allow it to meet its existing capital commitments, which amount to around €5 billion.