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

Hyderabad, 24 December 2021: 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 overwhelming response from investors, with bids for more than Rs 9,374 crore against a base issue size of Rs 1000 crore and 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 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.