Canara Bank has announced its decision to exercise the call option on its Basel III compliant Additional Tier I Bonds. This decision affects bonds with ISIN codes INE476A08100 and INE476A08118. The call option exercise is subject to regulatory approvals and will be executed on the specified due dates. This action is in line with the bank’s capital management strategy.
Call Option Exercise
Canara Bank will exercise the call option on its Basel III compliant Additional Tier I bonds. This decision affects two specific bonds detailed below.
Bond Details
The call option exercise pertains to the following bonds:
< •ISIN: INE476A08100
•Instrument: BASEL III AT I
•Issued Amount: Rs 1635 Cr
•Coupon Rate: 8.50% p.a.
•Date of Issue: 31-12-2020
•Call Option Date: 31-12-2025
•Term of Instrument: Perpetual
< •ISIN: INE476A08118
•Instrument: BASEL III AT I
•Issued Amount: Rs 120 Cr
•Coupon Rate: 8.30% p.a.
•Date of Issue: 02-02-2021
•Call Option Date: 02-02-2026
•Term of Instrument: Perpetual
Regulatory Approval and Execution
The Reserve Bank of India (RBI) has permitted the Bank to exercise the call option. The call option will be executed on December 31, 2025, and February 2, 2026 respectively, as per the terms of issuance.
Source: BSE
