Canara Bank exercises call option on Basel III AT I Bonds worth ₹4,000 crore
Canara Bank will exercise the call option on Basel III Compliant Additional Tier I Bonds totaling ₹4,000 crore. The bonds include INE476A08159 (₹1,000 Cr, 8.07%), INE476A08134 (₹1,500 Cr, 8.05%), and INE476A08126 (₹1,500 Cr, 8.40%). Regulatory approval is pending.
The exercise of the call option impacts ₹4,000 crore of debt, which is a significant amount. This will affect the bank's capital structure and future interest expenses, potentially influencing its net interest margin and overall profitability.
The bank is exercising a call option on its debt instruments, which is a pre-defined contractual right. While it may lead to refinancing opportunities, it does not inherently represent a positive or negative development for the bank's current financial performance.
Canara Bank has decided to exercise the call option on its Basel III Compliant Additional Tier I Bonds. This decision is subject to the approval of the Reserve Bank of India and other relevant regulatory authorities.
The bank intends to call back bonds with ISIN INE476A08159, which has an issue amount of ₹1,000 crore and an interest rate of 8.07% p.a. The call option date for this bond is March 4, 2027, with a record date of February 17, 2027.
Additionally, the bank will exercise the call option on bonds with ISIN INE476A08134, issued for ₹1,500 crore at an interest rate of 8.05% p.a. The call option date for this series is December 2, 2026, with a record date of November 17, 2026.
Furthermore, bonds with ISIN INE476A08126, also issued for ₹1,500 crore at an interest rate of 8.40% p.a., will have their call option exercised. The call option date for these bonds is October 25, 2026, with a record date of October 9, 2026.
These decisions follow previous intimations made by the bank on January 14, 2026, and September 3, 2026. The total amount for which the call option is being exercised across these three series of bonds is ₹4,000 crore.
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Canara Bank filed this with the NSE as a statutory disclosure, categorised under debt fundraising. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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