Standard Chartered Wins Waiver to Pre-Approve ECAT1 Capital Issuance Mandate

An update from Standard Chartered ( (GB:STAN) ) is now available.

Standard Chartered has obtained a waiver from the Hong Kong Stock Exchange to seek a specific shareholder mandate at its May 2026 AGM to issue Equity Convertible Additional Tier 1 (ECAT1) securities, separate from its general share issuance mandate. The move is designed to give the bank dedicated capacity to issue ECAT1 instruments without constraining its general mandate, allowing more flexible use of equity for other purposes such as consideration shares.

The bank argues that pre-approving a mandate for ECAT1 issuance is necessary to act swiftly when market conditions are favourable and to meet evolving regulatory capital requirements under the UK regime. ECAT1 and other AT1 securities can count toward up to 2.1% of Risk Weighted Assets as Tier 1 capital, and their terms will include a regulatory “Trigger Event” at which they convert to equity or are written down, though the bank stresses such an event is considered remote given current capital buffers and existing recovery actions, including potential rights issues and structured shareholder participation in any conversion.

More about Standard Chartered

Standard Chartered PLC is an international banking group headquartered in the U.K., providing retail, commercial and institutional banking services across multiple jurisdictions. The group operates under stringent regulatory capital frameworks, including the UK Capital Requirements Regulation and oversight by the Prudential Regulation Authority, and actively manages its Tier 1 capital structure to meet minimum capital ratios while maintaining flexibility and efficiency in its balance sheet.

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