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UPDATE 1-Co-Op mandates banks for sterling Tier 2 bond - lead
June 8, 2015 / 4:27 PM / 3 years ago

UPDATE 1-Co-Op mandates banks for sterling Tier 2 bond - lead

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By Alice Gledhill

LONDON, June 8 (IFR) - The Co-operative Bank plc, which nearly collapsed in 2013, is seeking to raise new Tier 2 debt in the public market.

It has mandated banks on a sterling-denominated 10-year non-call five Tier 2 bond. HSBC and UBS are lead managers on the deal.

The UK issuer will meet investors from June 10 for the unrated deal.

The bank nearly collapsed in 2013 and fell under the control of bondholders. It failed a Bank of England stress test in December 2014 in which its core capital fell to -2.6%, compared to a 4.5% pass mark.

It said at the time that it would not need to raise capital as it had already submitted a new capital plan which had been accepted by the UK financial regulator.

The bank then warned it would not be profitable until 2017 at the earliest. (Reporting by Alice Gledhill, editing by Anil Mayre)

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