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S. Korean banks to raise some 3.8 tln won next year via CoCo bonds

2014/11/12 09:57

SEOUL, Nov. 12 (Yonhap) -- South Korean banks are expected to raise up to 3.8 trillion won (US$3.47 billion) next year by selling contingent convertible bonds, or CoCo bonds, in their efforts to refinance maturing subordinated bonds and meet stricter capital requirements, a report showed Wednesday.

CoCo bonds refer to debts that a holder can convert into common stocks of the issuing bank if it becomes financially troubled and such bonds carry higher coupon rates compared to subordinated debts.