Key terms emerge on Greek banks’ CoCo bonds

3 November 2015
143 Views

The key terms and conditions of Greek banks’ CoCos have started to emerge, according to a source familiar with the situation.

On Sunday, the country’s government said that Greece’s bank bailout fund HFSF would provide state aid to recapitalise the country’s main banks by buying a mix of contingent convertible bonds (CoCos) and new shares the lenders will issue .

According to the source, the bonds will be perpetual and carry an 8 percent annual coupon. They will be fully discretionary and paid in cash or shares. The CoCos will rank pari passu with common shares.

If two coupons are missed or the bank’s CET1 ratio falls below 7 percent, the principal will be automatically converted at the share price set at the 2015 capital increase.

There is also an optional conversion feature at HFSF’s discretion in year seven.

You may be interested

Meteora: Journey to a Holy land
GREECE
shares42 views
GREECE
shares42 views

Meteora: Journey to a Holy land

Panos - Jan 18, 2018

Meteora means ‘suspended in space’. Your first, second and third sight of these impossibly tall, vertical rocks will have you…

The Legacy of Vassilis Tsitsanis in Greek Music
ART
shares48 views
ART
shares48 views

The Legacy of Vassilis Tsitsanis in Greek Music

Panos - Jan 18, 2018

When Vassilis Tsitsanis passed away on January 18, 1984, music historians and experts knew that there will never be another…

Abandoned ship adrift in Piraeus port
GREECE
shares47 views
GREECE
shares47 views

Abandoned ship adrift in Piraeus port

Panos - Jan 18, 2018

The coastguard of the port of Piraeus is on alert after an abandoned ship was found adrift. The ship “Panagia”…

Leave a Comment

Your email address will not be published.