Canara Bank Raises Rs 5,000 Crore via Basel III Tier II Bond Issue

The latest update is out from Canara Bank ( (IN:CANBK) ).

Canara Bank has raised Rs 5,000 crore through an issue of Basel III-compliant Tier II bonds, Series I, structured as unsecured, subordinated, listed, rated, non-convertible, redeemable, fully paid-up, taxable debentures with a face value of Rs 1 crore each and an annual coupon of 7.24%. The bonds, proposed to be listed on the NSE, were fully subscribed on the opening day and will mature in 2036 with a call option after five years and on subsequent anniversaries, strengthening the bank’s regulatory capital base and funding flexibility for future business expansion.

The issue comprised a base size of Rs 2,000 crore and a green shoe option of Rs 3,000 crore, both of which were exercised, indicating solid investor demand from a limited set of 12 allottees. By locking in long-term subordinated capital at a fixed coupon, the bank enhances its Tier II capital position under Basel III norms, which may improve its ability to support credit growth while maintaining regulatory ratios, potentially benefiting creditors and other stakeholders through a reinforced balance sheet.

More about Canara Bank

Canara Bank is a large public sector bank based in India, providing a wide range of retail and corporate banking services. It operates across lending, deposit-taking, and investment products, and regularly accesses domestic capital markets to meet regulatory capital requirements and support its growth in the competitive Indian banking sector.

Average Trading Volume: 1,991,084

Technical Sentiment Signal: Buy

Current Market Cap: 1424.5B INR

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