Canara Bank raises Rs 1,000 crore in AT1 bonds

Canara Bank has raised Rs 1,000 crore in Basel III-compliant Additional Tier I (AT-1) Bonds at 8.07% rate per annum, the bank announced Friday.

The bank said that it received bids for more than Rs 3,133 crore from investors, against a base issue size of Rs 250 crore and green shoe option of Rs. 750 crore.

The said Tier I bonds are perpetual in nature. However, it can be called back by the issuer after the fifth year from the deemed date of allotment. The bonds are rated 'AA+' by both CRISIL Ratings and India Ratings & Research.

This is the third AT-1 bond issuance by Canara Bank in the current financial year, taking the total raising to Rs 4,000 crore. It had also raised Rs 2500 crore in tier-II bonds.