Known as “contingent convertible bonds”, or “coco bonds” for short, they are bonds which convert automatically from debt to equity upon a specific trigger event – for instance, if an institution is faced with insolvency or if its tier 1 capital ratio drops below a certain threshold. In such cases, coco bonds increase the bank’s capital buffer.
*  *  *  Landbank President Gilda Pico, PDIC OIC Imelda Singzon, fellow bankers, co-workers in the BSP, our friends from the media, special guests, good morning.