first call date

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.

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.

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.
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References in periodicals archive ?
In addition, during the period, Crown redeemed all of the outstanding Subordinated Notes listed on the ASX under the code "CWNHA" on the first call date of 14 September 2018.
Release date- 29072019 - Origin Energy Limited (Origin) today announced that notice has been given to redeem the EUR1 billion Capital Securities due 2074 (2074 Capital Securities) issued by Origin Energy Finance Limited and listed on the Luxembourg Stock Exchange at their first call date (16 September 2019) in accordance with the terms of those securities.
This instrument is perpetual, with a first call date after five years, with a temporary write-down structure and a coupon of three month STIBOR + 9.50%.
ENGIE issued EUR 500 million of perpetual subordinated bonds with a first call date after 6 years.
Given easy access to capital markets, issuers typically call issues on the first call date, so extension risk is heavily discounted, offering relative value to investors.
The guarantee will be in full effect until the earlier of the payment of all sums payable in respect of the securities having been paid in full and the first call date in 2021.
Dubai: Gems Menasa Cayman, a unit of Gems Education, redeemed its $200 million (Dh734.6 million), 12 per cent sukuk at the first call date last month.
"In March, we issued a new $400 million corporate hybrid as part of a liability management exercise to tender our inaugural hybrid issued in 2013, ahead of its first call date in October," he noted.
The securities will pay 5.875 percent annually and are callable on May 5, 2022 and any distribution payment date after the first call date, the filing showed.
The perpetual securities will be callable on May 5, 2022 and any distribution payment date after the first call date. The distribution rate is 5.875 percent per annum, payable semi-annually in arrears on May 5 and November 5 of each year.
The securities are perpetual, with a first call date in 2020.
We are very pleased with the outcome and expect that this transaction will better position the Bank for future growth." The securities, which priced at 100%, will bear interest at a rate of 6.850% which will reset on 27 May 2020 (the First Call date) and every 5 years thereafter to a new fixed rate equal to the sum of the prevailing 5 year Mid Swap rate and the initial credit spread of 512.8bps.

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