RE: Why don’t they…27 May 2022 18:59
putup, re yr 12:27 post re early redemption of debt.
The Terms DO allow it.
The debt can be redeemed early, at the issuer's choice, and the applicable "penalty", which is quite low, is clearly defined in Clause 10 Redemption and Repurchase of Bonds, in particular Clause 10.2 Voluntary Early Redemption.
At the moment, Clause 10.2 .(a) (iii), alt 10.2. (a) (iv), alt 10.2.(a) (v) would apply, and these state:
10.2.(a) (iii)
"The Issuer may redeem the Outstanding Bonds (in whole or in part) (the “Call Option”) on any Business Day from and including Interest Payment Date in July 2021 to, but not including, the Interest Payment Date in July 2022 at a price equal to 104 per cent, of the Nominal Amount for each redeemed Bond"
Alternatively:
10.2.(a) (iv)
"The Issuer may redeem the Outstanding Bonds (in whole or in part) (the “Call Option”) on any Business Day from and including Interest Payment Date in July 2022 to, but not including, the Interest Payment Date in January 2023 at a price equal to 102 per cent, of the Nominal Amount for each redeemed Bond"
Alternatively:
10.2.(a) (v)
"The Issuer may redeem the Outstanding Bonds (in whole or in part) (the “Call Option”) on any Business Day from and including Interest Payment Date in January 2023 to, but not including, the Maturity Date at a price equal to 101 per cent, of the Nominal Amount for each redeemed Bond"
Clause 10.2. (c) states that: "The Call Option may be exercised by the Issuer by written notice to the Bond Trustee and the Bondholders at least ten (10), but not more than 20, Business Days prior to the proposed Call Option Repayment Date"
IMO, it's always good business to have a happy bunch of bondholders who have held to redemption, and been rewarded acc to the terms of agreement; you never know when you might have need of such a facility again.
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