163(1) did not apply to the contingent convertible
debt, even though the debt instrument will be paid in stock on conversion or may be paid on exercise of a put by the holder (at the issuer's option).
The company has offered USD500m of contingent convertible
senior notes due 2038.
Under the plan, the four will have to issue new shares to achieve a core tier 1 capital solvency ratio of at least 6% and contingent convertible
bonds, or CoCos, to boost the ratio to 9%.
Net proceeds from the offering will be used to repurchase and cancel 6,857,000 shares of contingent convertible
preferred stock owned by AIG.
5% Contingent Convertible
Senior Notes due 2037 (the "2037 Notes") validly tendered and not validly withdrawn for an aggregate consideration of approximately $600.
A 25 percent limit on investments in convertible bonds will also be removed, although there is a 10 percent cap on contingent convertible
Under the plan, banks will have to issue new common shares to achieve a core Tier 1 capital solvency ratio of at least 6% and contingent convertible
bonds or CoCos to boost the ratio to 9%.
The bank has started collecting orders for the inaugural Swiss franc issue of high-trigger contingent convertible
securities (CoCos) and said the minimum size of the deal would be CHF250m (USD275m/EUR207m).
Next week, international regulators are to meet to review whether CoCos, or contingent convertible
bonds, may count towards capital requirements for systemically important banks.
Woori Bank stated that it plans to issue contingent convertible
, or CoCo, bonds worth $500 million, looking to boost its capital ratio ahead of its next privatization attempt.