Mizrahi Tefahot Bank NIS417 million CoCo bond issue

Overview:

• Mizrahi Tefahot Bank has undertaken a NIS 417 million contingent convertible (CoCo) bond issue.
• The target of the issue was NIS1 billion.
• CoCos are fixed income debt instruments designed for banks, which can be converted into equity or written down if an issuer's equity capital ratio drops below a certain threshold (below 5% in Israel).
• This issue, along with one by Bank Leumi, represent the first issues of CoCos in the Israeli market, with both banks looking to strengthen their Tier 2 capital.

Sam Duke - Editor