Canara Bank raises Rs 1,000 crore in AT1 bonds
Agencies
Synopsis
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.
By Atmadip Ray, ET Bureau
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 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.
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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.
