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Clifford Chance

Clifford Chance
Briefings

Briefings

Still a capital outcome: CoCos can be redeemed

16 June 2016

The Supreme Court has, by a majority, upheld the Court of Appeal's decision that, on the interpretation of the relevant terms, a bank is entitled to redeem convertible contingent securities because they had ceased to help the bank to pass the PRA's stress tests. The Supreme Court perhaps took a more restrictive view as to what could be taken into account in determining what the words in question meant, but still reached the same conclusion.

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