Canara bank raises Rs 2000 cr by issuing Basel III complaint bonds

 Canara Bank on Tuesday had raised Rs 2,000 crore by issuing Basel III compliant additional tier I bonds in July. The bank came out with the issuance of Rs 2,000 crore of additional tier-I bonds on 15th July 2022. The bank received total bid amount of Rs 5,719 crore out of which full issuance of Rs 2,000 crore was accepted at 8.24%. 

The state-owned lender said it issued 2,000 bonds to 21 allottees on July 19, 2022. The perpetual, subordinated, perpetual, non-convertible, taxable, fully paid-up secured Basel III compliant additional tier I bonds carry coupon at 8.24 per cent per annum. Banks globally need to improve and strengthen their capital planning processes.