Canara Bank raises ₹2,000 cr. by issuing Basel III compliant bonds

Canara Bank on Tuesday said it had raised ₹2,000 crore by issuing Basel III compliant additional tier I bonds this month.

The bank came out with the issuance of ₹2,000 crore of additional tier-I bonds on July 15, 2022.

“The bank received total bid amount of ₹5,719 crore, out of which full issuance of ₹2,000 crore was accepted at 8.24%,” Canara Bank said in a regulatory filing.

The state-owned lender said it issued 2,000 bonds to 21 allottees on July 19, 2022.

The non-convertible, perpetual, taxable, subordinated, fully paid-up secured Basel III compliant additional tier I bonds carry coupon at 8.24% per annum.

Under the Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes.

Shares of Canara Bank closed 4.03% higher at ₹223.15 apiece on the BSE.