The Financial Conduct Authority (FCA) has temporarily suspended 11 of Co-op Bank's bonds on the request of the company, pending an announcement of a rescue plan by parent company Co-op Group.
New proposals will be released "when appropriate", according to a statement by Co-op Group, though they are expected to be "materially different" from its earlier restructuring plan. The initial proposal had seen the Co-op Group suggest that bondholders and owners preference shares fund £500m of a planned £1.5bn refinancing. The price of Co-op Bank bonds jumped today, prior to their suspension, as investors welcomed the latest development. Co-op Bank 5.5555% Perpetual Subordinated Bonds rose 4.59p on the news to 41.52p, a rise of 12.5%. The original plan had seen the Co-op Group...
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