Canara Bank has raised $350 million under the medium-term note (MTN) programme to fund its credit growth in its overseas branches. This is the bank's maiden issue of senior unsecured notes.

“There is a healthy demand for foreign currency loans from Indian corporates. Overseas investors have given a good response to our maiden MTN issue. The resources we have mobilised will be channelled as loans to corporates in India and abroad and also for supporting trade-related transactions,” said Mr S. Raman, Chairman and Managing, Canara Bank.

“We have raised the funds for funding the credit growth in our overseas branches,” Mr H.S. Upendra Kamath, Executive Director, Canara Bank, told Business Line . The bank informed the Bombay Stock Exchange that it has raised $350 million by issuing senior unsecured bonds under the MTN programme of $1 billion through its London branch. The coupon rate is 5.125 per cent per annum. The tenure of the bonds, which are listed on the Singapore Stock Exchange, is 5 years 6 months.

Canara Bank has four branches outside India — London and Leicester in the UK, and Hong Kong and Shanghai in China. It also has a representative office in Sharjah, and a joint-venture bank with State Bank of India, Commercial Bank of India LLC, at Moscow.