KBC expected to opt for permanent write-down for Coco

11 Jan 2013

Belgium’s KBC Bank is expected to emulate Barclays and choose a permanent write-down structure when it prints its non-dilutive contingent capital note, which could hit the market in just over a week’s time. The issuer takes to the road in Europe and Asia next Monday to meet investors in advance of the transaction, which will help it repay its state aid early.

The Belgian borrower has mandated Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs, JP Morgan, KBC and Morgan Stanley to arrange the meetings. The deal, expected to be €750m in size, forms part of a €2bn capital raise, intended to help KBC increase its capital ratio and ...

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