CoCo Bond Archives | Be Korea-savvy

Korean Banks Issue CoCo Bonds

SEOUL, May 10 (Korea Bizwire) – CoCo bonds, or contingent convertible bonds, are fixed-income instruments that are equity-convertible in cases of pre-specified trigger events. Despite their liability-like properties, they are classified as assets, which is prompting many banks to issue CoCo bonds as means of expanding capital. So technically, they’re asset-convertible debt. Major Korean banks, [...]

“CoCo Bond” Fast Emerging as Means for Banks to Procure Capital without Hurting Financial Soundness

SEOUL, Nov. 6 (Korea Bizwire) — As the Bank for International Settlements regulation on the capital adequacy ratio is tightened, more and more banks increasingly rely on the issuing of contingent convertible bonds, or CoCo bonds, for their preferred means of procuring capital. That’s because the issuing company doesn’t need to count shares in its calculation of [...]