Market awaits equity conversion for Piraeus CoCos

Tyler Davies

November 16, 2020 01:00 PM

Piraeus_Bank_PA_575x375_021120 — October 4, 2018 - Athens, Greece - Piraeus bank branch in Athens. Greek banking shares are down sharply amid investor fears over the lenders' needs to reduce their large stock of bad loans resulting from the financial crisis. The index of bank stocks was down 10 percent in Athens on Wednesday amid reports that some of the bigger banks plan to more aggressively write off bad loans. (Credit Image: © Aristidis VafeiadakisZUMA Wire) | Aristidis Vafeiadakis/Zuma Press/PA Images

Piraeus Bank is expected to have to convert its state-held contingent convertible bonds (CoCos) into equity, which will put the firm under Greek government ownership. The move comes after the Single Supervisory Mechanism this week refused the issuer’s request to settle its bond coupons in cash.

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Topics

Bank Capital Greece Europe Regulatory Capital EMEA FIG

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Tyler Davies