Friday 4 March 2022

Canara Bank raises Rs 1000 crore in Basel III-compliant Additional Tier I, Series III Bonds 2021-22

 


Canara Bank raises Rs 1000 crore in Basel III-compliant Additional Tier I, Series III Bonds 2021-22

Press Release

Bengaluru, 04 March 2022: 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.

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