ECONOMY

Piraeus Bank sets date for approving CoCos

Greece’s fourth-largest lender Piraeus Bank will seek shareholder approval on Jan. 21 for its contingent convertible bond issue of up to 2 billion euros, it said on Friday.

Battered by the country’s debt crisis and a protracted recession, Greece’s top four banks will be recapitalised by issuing contingent convertible bonds, known as CoCos, and new shares.

The central bank has set Piraeus’s total new capital requirement at 7.3 billion euros.

The CoCos will be fully taken up by the Hellenic Financial Stability Fund (HFSF), set up to recapitalise the country’s banks.

Piraeus Bank, which took over the healthy assets of state lender ATEbank and agreed to buy Societe Generale’s Greek unit Geniki, lost 629 million euros in the nine months to end-September.

[Reuters]