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.