Canara Bank has announced raising Rs 2,000 crore in Basel III Compliant Additional Tier-I Series-I bonds.
The issue received an overwhelming response from investors, with bids for more than Rs 5,719 crore against a base issue size of Rs 500 crore and a green shoe option of Rs 1,500 crore. Based on the response, the bank will accept Rs 2,000 crore at a coupon rate of 8.24 per cent per annum, said the release.
According to the bank, Tier-I bonds are perpetual in nature. However, these bonds can be called back by the issuer after the 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 and Research Ltd.
This is the bank’s first series of Additional Tier-I bond issuance for the financial year 2022-23. During FY 2021-22, Canara Bank had raised Basel-III Compliant Additional Tier-I bonds of Rs 4,000 crore and Tier-II bonds of Rs 2,500 crore.