Call option notices sent to holders of Rs. 1500 Crore 8.40% AT-1 bonds
Canara Bank has sent call option notices to holders of its Basel III AT-1 bonds worth Rs. 1500 Crore, coupon 8.40% p.a., issued 25-10-2021.
- Bond Amount
- Rs. 1500 Crore
- Coupon Rate
- 8.40% p.a.
- Issue Date
- 25-10-2021
- Call Option Date
- 23-10-2026
- Record Date
- 08-10-2026
What happened
Canara Bank has sent copies of the call option notices to holders of its Basel III compliant Additional Tier I (AT-1) bonds, ISIN INE476A08126.
Bond details
- Issued amount: Rs 1500 Cr
- Coupon: 8.40% per annum, payable annually
- Date of issue: 25-10-2021
- Call option date: 23-10-2026 (25.10.2026 being a holiday)
- Record date: 08-10-2026
- Term: Perpetual
Payment terms
The principal amount together with interest accrued for the period from 25/10/2025 to 24/10/2026 will be paid on 23.10.2026, and the bond will not carry any obligation from the call option date. Payment will be made through RTGS/NEFT/Direct Credit to beneficiaries in NSDL/CDSL records as at the close of the record date.
On payment, the bonds are treated as discharged and will be extinguished in bondholders' demat accounts, and the Bank's liability towards holders ceases from the call option date.
Approvals
The Bank received the necessary approvals from the Reserve Bank of India vide letter dated 15th September 2026. As per the Information Memorandum, the Bank may exercise the call option after the instrument has run for at least 5 years.
How to read it
AT-1 bonds are perpetual instruments that count towards a bank's capital. Calling them back is a routine capital management step once the minimum period and regulatory approval are in place. This concerns bondholders directly; for equity shareholders it is an information update on the Bank's capital instruments.
Also from Canara Bank
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3 Oct 2026
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1 Oct 2026
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1 Oct 2026
More numbers
- Issued amount of AT-1 bonds1500
- Coupon rate8.40
- Minimum run period before callat least 5 years
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