first call date

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First call date

A date stated in an indenture that is the first date on which the issuer may redeem a bond either partially or completely.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

First Call Date

The first date on which a callable bond or other fixed income security may be called. A callable bond allows the issuer to redeem the bond before maturity. When the bond is called, the bondholder receives the par value and does not receive any more coupons. Callable bonds are issued to allow the issuers to hedge against interest rate risk. That is, if interest rates lower significantly, they can call the bond and issue a new bond at a lower interest rate, reducing their liabilities. However, to protect the bondholder, most callable bonds also include a first call date, which guarantees the current interest rate for a certain period of time. The first call date is included in the bond agreement. See also: Doomsday call, Yield to first.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

first call date

The earliest date on which a security may be redeemed by the issuer. This date is particularly important to an investor who holds a security that is selling above or near its call price. The first call date is likely to be either five years or ten years after the date of issue; however, the timing varies by bond issue. Information regarding the first call date may be found on the bond certificate or it may be obtained from the brokerage firm holding the security. Bonds selling at a premium are often quoted at the yield to first call. See also yield to call.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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Despite this, AT1 supply continues to be driven by the need to refinance legacy instruments that will no longer be included in regulatory capital and by refinancing issues from more established issuers, ahead of upcoming first call dates. Issuance in 1Q18 was further boosted by new issuers building up their AT1 capital stack.
"We consider the proposed hybrid capital securities to have "intermediate" equity content until their first call dates, which are not expected to be before 2018, because they meet our hybrid capital criteria in terms of their subordination, permanence, and optional deferability during this period.
"The interest to be paid on the proposed capital securities will increase by 25 basis points (bps) in 2023, and a further 75bps 20 years after the first call date. We consider the cumulative 100bps as a material step-up, which is currently unmitigated by any commitment to replace the instruments at that time.
"Consequently, in accordance with our criteria, we will no longer recognize the instruments as having "intermediate" equity content after the first call date, because the remaining period until its call date would, by then, be less than 20 years.
The first call dates on the 2009-B and 2009-C securities are 15 November 2011 and 17 January 2012, respectively.
The tender for SEB's two USD-denominated capital contribution securities with first call dates in March 2014 and March 2015 is still in the process, the bank added.
Second, the distribution of first call dates exhibits a degree of uniformity that seems inconsistent with the notion that call dates are set close to the date when new information will be revealed, as the asymmetric information and underinvestment theories state.
Our second test focuses on the distribution of first call dates among the callable bonds in the sample.
The proceeds of the hybrid issue will be used to refinance two hybrid bonds with forthcoming first call dates, the EUR600 million PerpNC July 2018 and GBP300 million PerpNC January 2019 issues; and structured under ENGIE's Green Bond Framework for renewable energy or energy efficiency projects, natural resources preservation projects, as well as R&D investments in such areas.
The price for the securities, with first call dates in March 2014 and March 2015, will be set during the tender process, which will last for 20 days.

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