Hi,
The interest rate level is explained by company-specific factors as well as the nature of the instrument. AT1 is an instrument similar to a bank’s hybrid capital, where the bank can choose not to pay interest, and which can be written down if the company were to run into a crisis. The instrument’s B- rating (Fitch) reflects this risk (clearly on the high-yield side). As a rough point of comparison to a more traditional senior-level loan, you could look at the parent company’s bond issued in 2024 at 3m Euribor + 6.75% interest. Then of course Multitude as a company is riskier than, for instance, traditional banks, partly because a large share of the loan portfolio consists of unsecured consumer loans. However, the risk profile of the loan portfolio has recently been clearly on a downward trend.