Deals of the Year 2012: Barclays CoCo
|Size||$3 billion of 10-year contingent capital notes|
|Global coordinating bookrunner and structuring adviser||Barclays|
|Bookrunners||Citi, Credit Suisse, Deutsche Bank and Morgan Stanley|
|return to the Global Deals of the Year index|
Science fiction has no place in the real world of bank capital, but when one bank goes boldly beyond where any other bank has gone before with a CoCo under CRD IV, there is perhaps something of a whiff of the future about it.
For Barclays, the bank that boldly broke new ground for the banking sector, the remarkable success of its $3 billion contingent capital notes (CoCo) sale in November last year was very real indeed.
At a stroke, the UK bank met its December 2013 primary loss-absorbing capital target – as is required under the Capital Requirements Directive IV (CRD IV) which transposes Basle III into EU law – in an instrument that has all the loss absorbency of equity while still counting as debt for investor purposes.