Canara Bank taps bond market with $400 mn issue

It is part of a $2 billion medium term note programme

Karnataka:Bengaluru:08/03/2015: for file: Head office of Canara Bank was lite up on Saturday night. Photo:V Sreenivasa Murthy

State-run Canara Bank is in the international bond market with a $400-million issue as part of its $2 billion medium term note programme.

“Canara Bank is in the international debt market with a benchmark dollar bond issue that will have a tenor of five years.

“The lender is likely to raise $400 million through the bond sale issue, which will be drawn through its London branch and will be listed on the Singapore Stock Exchange,” merchant banking sources told PTI.

The Bangalore-based bank has hit the forex debt market after a long gap.

Moody’s has assigned a Baa3 rating to the issue, which is on par with the sovereign rating since the bank is majority owned by the government. Moody’s, in a note, said the proposed senior unsecured notes, is being issued under its $2 billion medium0term note programme.