BENGALURU, 02 DECEMBER 2021 (GPN): Canara Bank has raised Rs1,500 crore in Basel III-Compliant Additional Tier 1 (AT1) bonds Series II, at a coupon rate of 8.05% per annum.

The issue received overwhelming response from investors, with bids for more than Rs 4,699 crore against a base issue size of Rs 500 crore. Based on the response, the Bank has decided to accept Rs 1,500 crore at a coupon rate of 8.05% per annum.

The AT1 instrument is perpetual in nature. However, it can be called back by the issuer after five years or any anniversary date thereafter.

The Bank’s AT1 bonds are rated AA+ by CRISIL and India Ratings & Research Ltd.

This is the Second AT1 bond issuance of the Bank post the new SEBI regulations, During October 2021 bank has raised Basel III Compliant Additional Tier I bonds of Rs 1500 Crore.

About Canara Bank:

Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port town in Karnataka. Canara Bank is the third-largest public sector bank in the country after its amalgamation with Syndicate Bank in April 2020.

At present, it is functioning with 9772 Branches along with 12343 ATMs. The Bank has gone through various phases in its growth trajectory over the hundred years of its existence. The growth of Canara Bank was phenomenal, especially after nationalization in the year 1969, attaining the status of a national-level player in terms of geographical reach and clientele segments. In June 2006, the Bank completed a century of operations in the Indian banking industry. The eventful journey of the Bank has been characterized by several memorable milestones. Today, Canara Bank occupies a premier position in the comity of Indian banks.