ATHENS: Piraeus Bank, one of Greece's largest lenders, said on Monday that it has missed the payment of a coupon on an outstanding contingent convertible bond (CoCo) held by Greece's bank rescue fund (HFSF).

The European Central Bank last month rejected Piraeus' request to pay the coupon. Not paying it meant that the outstanding 2.04 billion euro ($2.47 billion) CoCo bond will be converted to common shares, raising the HFSF's 26% stake in the bank to 61%.

"A trigger event has occurred on December 2nd 2020, causing the conversion of the CoCo to ordinary shares," Piraeus said in a bourse filing on Monday. It has set Jan. 4, 2021 as the conversion date.