Contingent convertible bond

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.

The conversion of Piraeus Bank's contingent convertible bonds (CoCos) into shares will be at a price of 6 euros per share, Kathimerini understands.

This is going to cost the Hellenic Financial Stability Fund, the lender's majority shareholder, some €1.5 billion, according to sources.

International agencies view the outlook of Piraeus Bank favorably after the formal verdict by the European Central Bank that leads to turning the Greek lender's contingent convertible bonds (CoCos) into common shares, and despite the major drop in third-quarter profits announced.