Banco Macro has issued a $150 million 30-year non-call 10 bond under the new laws, which permit hybrid instruments such as these to be considered as part of the tier 1 capital that banks must hold. Ordinarily a bank would have to use its equity to meet this regulatory requirement; permitting banks to use hybrid instruments as well allows them to raise cheap capital while offering investors a substantial pick-up over an issuer’s straight bonds.
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