Canara Bank has raised Rs 1000 crore in Basel III-Compliant Additional Tier I, Series III bonds, at a coupon rate of 8.07% per annum.
The issue received overwhelming response from investors, with bids for more than Rs 3,133 crore against a base issue size of Rs 250 crore and green shoe option of Rs. 750 crore. Based on the response, the Bank has decided to accept Rs 1,000 crore at a coupon rate of 8.07% per annum.
The said Tier I bonds are perpetual in nature. However, it can be called back by the issuer after fifth anniversary from the deemed date of allotment or any anniversary date thereafter.
The Bank’s Additional Tier I bonds are rated AA+ by CRISIL Ratings and India Ratings & Research Ltd.
This is the third series of Additional Tier I bond issuance of the Bank for the financial year 2021-22. During FY 2021 -22, Bank has raised Basel III Compliant Additional Tier I bonds of Rs. 4,000 crore and Tier II bonds of Rs. 2,500 crore.
About Canara Bank:
Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port town in Karnataka. Canara Bank is the third-largest public sector Bank in the country. The Bank has gone through various phases in its growth trajectory over the hundred years of its existence. The growth of Canara Bank was phenomenal, especially after nationalization in the year 1969, attaining the status of a national-level player in terms of geographical reach and clientele segments. In June 2006, the Bank completed a century of operations in the Indian Banking industry. The eventful journey of the Bank has been characterized by several memorable milestones. Today, Canara Bank occupies a premier position in the comity of Indian Banks.
This article was shared with Prittle Prattle News as a Press Release.
