Capital Innovation & CoCo Bonds Europe 2011 - The big idea

2011: Basel III shifts into a new gear
Recent Basel III announcements mean that change is no longer a distant and hazy proposition for banks. It’s real and it needs to start happening now. Core Tier 1 capital ratios need to increase dramatically over the next few years, and at the same time current hybrid bond structures that have always previously qualified as Core Tier 1 capital now need to be phased out by 10% a year between 2013 and 2023. So what can and will replace these hybrid bonds? And what other instruments and strategies can banks consider as an alternative to issuing more equity?

CoCo: the new kid on the block
CoCos certainly seem to be the first off the mark. With Rabobank, Credit Suisse and Lloyds Banking Group all announcing major issues of CoCos, and the likes of Newcastle Building Society and Bank of Cyprus pioneering variations such as the reversible CoCo and the CoCoCo, is this the dawn of the next huge fundraising marketplace? Or is it a minor bubble that will soon burst?

In research over the early part of 2011, treasurers and CFOs at major retail banks across Europe told us they had 3 major concerns around the subject of CoCos:

• WHAT ROLE SHOULD COCOS PLAY IN THEIR FUNDING MIX?
• IS THERE A REAL AND SUSTAINABLE INVESTOR BASE FOR THIS CAPITAL INSTRUMENT?
• HOW CAN THEY DEVELOP THIS NEW FUNDING SOURCE IN PRACTICE?

An event to help drive solutions
Capital Innovation & CoCo Bonds Europe 2011 is designed to answer these questions and educate banks across Europe and the rest of the world on how to exploit CoCos and its future variations in order to create a successful new platform for raising their Core Tier 1 capital ratio. If you provide advice or services that can help these potential new issuers, then you should be involved at Capital Innovation & CoCo Bonds Europe 2011.

Download the sponsorship prospectus »