According to Reuters, the bank said it would issue the securities, known additional tier 1 (AT1) bonds, gradually and decide on the timing of the first round at a later date.
AT1 bonds are some of highest risk debt that banks can issue. The bonds, also known as Co-Co bonds or contingent convertibles, are used to meet regulatory requirements and to act as a protective layer that can absorb losses in times of trouble. They were designed in the wake of the 2008 financial crisis to try to ensure investors, rather than taxpayers, would be on the hook if a bank ran into financial difficulties.
UK-based bank Lloyds was the latest European lender to take this option in the last week of May 2020.
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