Key terms emerge on Greek banks’ CoCo bonds
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
Government’s economic team briefs Tsipras on review talksilias1 - Apr 29, 2017
The government's economic team briefed Prime Minister Alexis Tsipras on Thursday evening the ongoing negotiations with Greece's creditors on the…
Thessaloniki port authority posts 14 mln€ in profits for 2016ilias1 - Apr 29, 2017
The Thessaloniki Port Authority on Friday announced net profits of 14 million euros for 2016, with pre-tax profits reaching 21…
Spike in complaints filed with Ombudsman office in 2016ilias1 - Apr 29, 2017
The office of Greece's Consumers' Ombudsman on Thursday announced that just more than 7,000 petitions were filed in 2016 to…