Canara Bank sets record date for call option on bonds worth ₹4,500 crore
Canara Bank is set to exercise call options on its Basel III-compliant bonds, with a record date of February 19 for the Tier-I bond and February 24 for the Tier-II bond. Redemption is scheduled for March 5 and March 11, 2025, with RBI's approval secured.
Public sector bank (PSB) Canara Bank has decided to exercise call option on Basel III-complaint Additional Tier-I Bond and Tier-II Bond. For this purpose, the PSU lender has also announced the record date, according to an exchange filing shared by the company on Monday, February 10.
Record date for Tier-I bond
Canara Bank has decided to exercise the call option and pay interest and redemption amount concerning the 9.55% unsecured, non-convertible Basel-III compliant additional Tier-I bond on March 5, 2015. The bank plans to exercise the call option on March 5, 2025. The company said it has already received the Reserve Bank of India's (RBI) approval for the same.
For this purpose, the bank has set Tuesday, February 19 as the record date for this purpose. The issue size for the bond is ₹1,500 crore.
Record date for Tier-II bond
Similarly, the bank has also decided to exercise the call option and pay interest and redemption amount in respect of the 7.18% unsecured, subordinated, non-convertible Basel-III compliant Tier-II bond issued on March 11, 2020.
The PSU bank plans to exercise the call option on March 11 and the record date for the said purpose has been fixed as Monday, February 24. The issue size for the said bond is ₹3,000 crore.
The lender had informed stock exchanges that it had decided to exercise the call option on the two bonds on January 31, 2025.
"We wish to inform that the Reserve Bank of India vide letter ref: DOR.CAP.S6813/21-01-002/2024-25 dated 29th January 2025 has permitted the Bank to exercise the call option of the above said Bonds and the Bank is in process of exercising the call option on the due date, i.e., 05th Mar 2025 & 11th Mar 2025, respectively as per the terms of issuance," Canara Bank said in an exchange filing.
Stock trades 2% lower
Amid weakness in the broader market, Canara Bank shares were trading 1.73% lower at 2.15 pm on the BSE at ₹92.42 apiece.
During the day, the stock hit the day's high of ₹94.40 and a low of ₹91.91.
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