ISTANBUL - Turkiye Garanti Bankasi (IS:GARAN) A.S. (TGBD), also known as Garanti BBVA (BME:BBVA), has announced its decision to proceed with the early redemption of subordinated debt securities. The bank's Board of Directors resolved to redeem the securities, which are part of the Tier 2 Capital, with a nominal value of TRY 750,000,000. These securities were initially set to mature on February 14, 2030, but will now be redeemed early on February 14, 2025.
The early redemption applies to debt securities with 3-month coupon payments indexed to the BIST TLREF index. The bank has already sought approval from the Banking Regulation and Supervision Agency (BRSA) for this action, and the redemption will take place following the receipt of BRSA's approval.
These subordinated debt securities were sold exclusively to qualified investors, with the sale commencing on February 12, 2020, and concluding the following day. The securities had a maturity period of 3653 days at the time of issuance.
This move by Garanti BBVA is part of the bank's broader capital management strategy. Subordinated debts are often used by banks to meet regulatory capital requirements, as they can be counted towards a bank's secondary capital. The early redemption of these securities could be indicative of the bank's capital position and financial strategy.
The bank has confirmed that the information provided is in line with the principles of the Board’s Communiqué, Serial II Nr.15.1, and reflects accurate records and documents.
This announcement is based on a press release statement from Garanti BBVA and is intended to provide factual information to the investment community. It does not serve as an endorsement of the bank's actions or imply any future performance. The bank has taken responsibility for the accuracy of the statements made in this regard.
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