Zürcher Kantonalbank decides not to call the CHF 750 million Additional Tier 1 bond
Media release from 31 August 2023 7.05h (Ad hoc announcement pursuant to article 53 LR SIX Exchange Regulation and section 16 BX Swiss)
Zürcher Kantonalbank has decided not to exercise its call-option for the outstanding Additional Tier 1 (AT1) bond with contingent write-down and a notional value of CHF 750 million (ISIN: CH0361532945) as of the first call date of 30 October 2023.
In accordance with the terms of the bond, the coupon for the next five-year period will be reset on 30 October 2023 based on the then prevailing five-year swap rate, plus a margin of 2.125%.
The AT1 bond can be redeemed by the issuer at its discretion in the future, on 30 October each year, subject to a 30-day notice period and prior regulatory approval.
Zürcher Kantonalbank takes every call-decision individually on an economic basis, taking account of underlying market conditions, the regulatory value of the instrument and its own capital planning.