Bank of Israel approves first issue of loss-absorbing bonds
Bank Mizrahi-Tefahot allowed to issue contingent convertible bonds
The Bank of Israel has approved the country's first issuance of loss-absorbing bonds, which will be recognised as part of a bank's regulatory capital, the central bank said today (November 18).
Israel's Bank Mizrahi-Tefahot will be the first bank to issue contingent convertible bonds (Cocos). Cocos include clauses allowing them to convert to equity or be written off completely in the event of a crisis, thus absorbing losses. In this way, the bonds will count towards a bank's Tier 2 capital under
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