Soft Call Provision

Soft Call Provision

In some callable bonds and other fixed income securities, a provision in the indenture stating that the issuer will pay a premium to the face value or market value of the security if it calls it before maturity. Soft call provisions exist to encourage investment in the securities carrying them because they provide a disincentive for early redemption.
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References in periodicals archive ?
Dr Al-Sabeeh said Dana has the option to pay down the outstanding principal amount of the new sukuks prior to the new maturity date of October 31, 2017, subject to the applicable call premia on the ordinary sukuk and the soft call provisions on the convertible sukuk.
Outstanding principal Dana Gas has the option to pay down the outstanding principal amount of the new sukuks prior to the new maturity date of October 31, 2017, subject to the applicable call premia on the ordinary sukuk and the soft call provisions on the convertible sukuk, it added.