Market awaits equity conversion for Piraeus CoCos

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By Tyler Davies
16 Nov 2020

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.

Piraeus had intended to honour the 8% annual coupon on its €2.04bn of government CoCos, which would have cost it about €165m, or 40bp in capital terms.

But the bank said on Monday that the SSM had declined its request to be able to make the payment, due on ...

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