Canara Bank raised Rs 2500 crore in Basel III-compliant Tier II bonds 2021-22

The Bank’s Tier II bonds are rated AAA by CARE Ratings and India Ratings & Research Ltd.

Canara Bank raised Rs 2500 crore in Basel III-compliant Tier II bonds 2021-22
Canara Bank

Hyderabad: Canara Bank has raised Rs 2,500 crore in Basel III-Compliant Tier II bonds, at a coupon rate of 7.09% per annum.

The issue received an overwhelming response from investors, with bids for more than Rs 9,374 crore against a base issue size of Rs 1000 crore and a green shoe option of Rs. 1500 crore. Based on the response, the  Bank has decided to accept Rs 2,500 crore at a coupon rate of 7.09% per annum.

The said Tier II bonds are issued with the tenor of 15 years. However, it can be called back by the issuer after ten years or any anniversary date thereafter. The Bank’s Tier II bonds are rated AAA by CARE Ratings and India Ratings & Research Ltd.

This is the first Tier II bond issuance of the Bank for the financial year 2021-22. During Q3 2021-22, Bank has raised  Basel  III Compliant  Additional  Tier I bonds of Rs. 3,000 crore.