BoC dips toe in CoCo market

Spain's BBVA and Bank of Cyprus reopened the market with the issuance of the first euro-denominated contingent convertible bonds (CoCo) since the rescue of Credit Suisse in March, in what is seen as an attempt to restore confidence in the banks' riskiest debt instruments.

Bank of Cyprus started selling on Tuesday a 220-million-euro AT1, according to a lead manager memo seen by Reuters.

The debt - which has attracted over €2.2 billion of orders from investors - will pay a coupon of 11.875%, the memo added. [Reuters]