Deals of the Year 2012: Barclays CoCo
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Deals of the Year 2012: Barclays CoCo

Size $3 billion of 10-year contingent capital notes
Date November 2012
Global coordinating bookrunner and structuring adviser Barclays
Bookrunners Citi, Credit Suisse, Deutsche Bank and Morgan Stanley
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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.