Canara Bank: Exercising Call Option on ₹1,500 Crore AT1 Bonds

Canara Bank announced that it has received approval from the Reserve Bank of India (RBI) to exercise the call option on its Basel III Compliant Additional Tier I (AT1) Bonds. The total value of these bonds is ₹1,500 Crore. The bank is proceeding with exercising this option as per the terms of the bond issuance and relevant regulations, impacting its capital management strategy.

Canara Bank Secures RBI Approval for Bond Call Option

Canara Bank has received formal approval from the Reserve Bank of India (RBI) to exercise the call option on its Basel III Compliant Additional Tier I (AT1) Bonds. The bonds in question, identified by ISIN INE476A08134, have a total outstanding value of ₹1,500 Crore.

Strategic Capital Management Move

This strategic move allows the bank to potentially redeem these bonds ahead of their maturity, subject to the original terms of issue and all applicable laws and regulations. Canara Bank has confirmed that it is in the process of executing the exercise of this call option. This action is a part of the bank’s ongoing capital management and optimization efforts.

The bank has provided references to previous communications regarding the Basel III AT1 Bonds. This development is for the information and records of the stock exchanges.

Source: BSE

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