Europe close to interim solution for PONV as issuers eye up tier two

03 Jan 2013

New rules specifying how subordinated bonds and additional tier one instruments must be structured, including how to incorporate loss absorption at the point of non-viability (PONV), could be finalised as soon as February, the European parliament has said. Once agreed, the framework could be passed into law in the first half of the year — but bankers reckon that issuers will power ahead with new deals before then.


The next three-way discussions between the European parliament, commission and council on the fourth capital requirements directive (CRD IV) and the first capital requirements regulation (CRR) is scheduled for January 15. That date coincides with the European parliament’s plenary week, meaning that even if the rules were agreed ...

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