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  • Busan Bank raising $250m through CoCo bonds
    Busan Bank raising $250m through CoCo bonds
    Busan Bank, a subsidiary of BNK Financial Group, has sold contingent convertible bonds, or CoCos, worth $250 million, the lender said on Wednesday. The 10-year additional tier 1 bond, which drew orders of almost $2.4 billion, is priced with a coupon of 3.675 percent. “It is the lowest rate among US dollar-denominated CoCos ever issued in Asia since Basel III came into effect,” an official at Busan Bank said. The B...
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Busan Bank raising $250m through CoCo bonds

July 20, 2016 - 17:14 By Korea Herald
Busan Bank, a subsidiary of BNK Financial Group, has sold contingent convertible bonds, or CoCos, worth $250 million, the lender said on Wednesday.

The 10-year additional tier 1 bond, which drew orders of almost $2.4 billion, is priced with a coupon of 3.675 percent. 


“It is the lowest rate among US dollar-denominated CoCos ever issued in Asia since Basel III came into effect,” an official at Busan Bank said.

The Basel III is a global regulatory framework on bank capital requirements, stress testing and liquidity risk.

The lender plans to use the raised funds to pay back its senior debt worth $300 million which matures in February next year.

By Park Han-na (hnpark@heraldcorp.com)
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