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Paragon Prices Oversubscribed £150m Inaugural AT1 Note to Bolster Capital Base

Story Highlights
  • Paragon has priced a £150m inaugural AT1 note after attracting £1.85bn in investor orders.
  • The oversubscribed AT1 strengthens Paragon’s Tier 1 and total capital ratios, enhancing funding flexibility and resilience.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Paragon Prices Oversubscribed £150m Inaugural AT1 Note to Bolster Capital Base

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Paragon Banking Group PLC ( (GB:PAG) ) has issued an announcement.

Paragon Banking Group PLC has successfully priced its inaugural £150 million Fixed Rate Reset Perpetual Contingent Convertible Additional Tier 1 (AT1) notes, with issuance scheduled for 5 February 2026, following exceptionally strong investor demand that generated a £1.85 billion order book. The AT1 securities, carrying an initial 7.5% coupon and expected BB/Ba2 ratings, will diversify Paragon’s capital base, lift its prospective Tier 1 and total capital ratios (to 15.0% and 16.7% respectively based on recent figures), and provide greater funding flexibility, signalling robust market confidence in the bank’s strategy and strengthening its regulatory capital position without diluting its CET1 ratio.

The most recent analyst rating on (GB:PAG) stock is a Buy with a £1050.00 price target. To see the full list of analyst forecasts on Paragon Banking Group PLC stock, see the GB:PAG Stock Forecast page.

Spark’s Take on GB:PAG Stock

According to Spark, TipRanks’ AI Analyst, GB:PAG is a Neutral.

Overall score reflects attractive valuation (low P/E and high dividend yield) and supportive technical positioning above major moving averages. These positives are tempered by financial risks from rising leverage and notable volatility in revenue and cash flow, which reduce confidence in the stability of recent performance.

To see Spark’s full report on GB:PAG stock, click here.

More about Paragon Banking Group PLC

Paragon Banking Group PLC is a UK-based specialist banking group focused on lending and savings, with a strategy centred on maintaining a strong balance sheet and delivering sustainable value to customers, shareholders and other stakeholders. The group operates in regulated financial markets and actively manages its capital structure to support growth and resilience.

Average Trading Volume: 493,578

Technical Sentiment Signal: Strong Buy

Current Market Cap: £1.66B

See more insights into PAG stock on TipRanks’ Stock Analysis page.

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