Bengaluru, 25th October 2021: Canara Bank has raised Rs 1,500 crore in Basel III-Compliant Additional Tier 1 (AT1) bonds, at a coupon rate of 8.40% per annum. This is the first AT1 bond issuance of the Bank post the new SEBI regulations.
The issue received overwhelming response from investors, with bids for more than Rs 3,400 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 8.40% 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 AA by India Ratings & Research Ltd.
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