Outcome of the Board Meeting - Intimation under Regulation 30 & 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Notice for Exercise of Call Option/Record date/Payment date by the Bank on SIB Bond-ISIN INE683A08036.
SOUTHBANK · price
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The South Indian Bank's board has approved exercising the call option on its non-convertible, unsecured, Basel III compliant Tier 2 Bonds (ISIN INE683A08036) on September 12, 2025. These bonds were issued on November 28, 2017 with a face value of Rs. 1,00,000 each at par, carrying a 9.50% per annum coupon paid half-yearly. The total issue size being called back is Rs. 490 crore. The record date for eligible bondholders is August 28, 2025, and interest will be paid only up to September 11, 2025. Principal and interest will be paid to bondholders on the call option exercise date.
The bank is repaying Rs. 490 crore of Tier 2 capital bonds, which will reduce its regulatory capital base slightly. For equity shareholders, this is a routine, pre-scheduled redemption that signals the bank is managing its capital stack, though it removes a relatively high-cost (9.50%) funding source.