To augment its tier II capital and further strengthen capital adequacy, Canara Bank is planning to raise ₹1,000 crore. The board of directors of the bank, at a meeting on Monday approved the issue of 9.70 per cent Canara Bank 2024 bonds. The bonds bearing 9.70 per cent interest are unsecured, non-convertible, redeemable, Basel III-complaint, tier 2 bonds (series II in the nature of debentures of ₹10 lakh each).
The bonds are to be listed on the wholesale debt market (WDM) segment of the National Stock Exchange.
The bank, in a note to exchanges, said the funds raised through the private placement are not meant for financing any particular project. The money raised will be utilised for regular business activities.
The opening, closing and allotment date of the issue is March 27. Standard Chartered Bank is the arranger and the trustee bank is Vijaya Bank.