Mumbai: State-owned Canara Financial institution on Friday stated it has raised ₹1,000 crore in Basel III-compliant extra tier I, collection III bonds, at a coupon fee of 8.07% every year.
The problem acquired overwhelming response from buyers, with bids for greater than ₹3,133 crore towards a base concern measurement of ₹250 crore and greenshoe possibility of ₹750 crore, it stated. Based mostly on the response, the financial institution has determined to just accept ₹1,000 crore at a coupon fee of 8.07% every year.
“The stated tier I bonds are perpetual in nature. Nonetheless, it may be referred to as again by the issuer after the fifth anniversary from the deemed date of allotment or any anniversary date thereafter,” it stated, including that its extra tier I bonds are rated AA+ by Crisil Rankings, and India Rankings and Analysis Ltd.
That is the third collection of extra tier I bond issuance of the financial institution for the monetary yr 2021-22. Throughout FY22, the financial institution has raised Basel III compliant extra tier I bonds of Rs. 4,000 crore and tier II bonds of ₹2,500 crore.
Supply: Live Mint