Update on Recapitalisation Plan for The Co-operative Bank
The Co-operative Group and The Co-operative Bank announced on 17 June 2013 the outcome of the review of the Bank's capital position and details of a plan to provide stability to the Bank with the generation of £1.5bn of additional Common Equity Tier 1 capital. This capital requirement has been reconfirmed today by the Bank and the Prudential Regulation Authority.
The Board of the Group remains committed to delivering a solution that provides both the necessary capital for the Bank, while preserving its ethical focus, and an acceptable outcome for bondholders, including private investors. To this end, we have been engaging with different bondholder constituencies and seeking to balance the requirements and expectations of these parties. We currently expect that many elements of any recapitalisation plan will be materially different to the outline provided on 17 June 2013, whilst still meeting the additional £1.5bn Common Equity Tier 1 capital requirement.
The plan continues to evolve through the process of consultation and negotiation with bondholders, therefore we cannot provide further detail at this stage.
Constructive engagement with bondholders is continuing and Group remains confident that a proposal to recapitalise the Bank can be agreed and put to bondholders. We will make a further announcement when appropriate.
For further information contact:
The Co-operative Group
Tel: 07880 784442 / 07831 314671
Tel: 020 7353 4200