Canara Bank will raise $300 million (Rs 1,380 cr) in first tranche through hybrid capital and bonds from overseas market to augment capital base and fund overseas expansion plans. The Bangalore-based public sector bank has finalised plans to raise $100 million by way of hybrid capital (Tier I) and $ 200 million through bonds (Upper Tier II), Canara Bank said in a release.It has appointed Citi Group Global Capital Market, HSBC, ABN Amro and UBS-AG as mandated lead arrangers in the issue. The first tranche of $ 300 million is part of the medium term notes programme of the bank to raise capital overseas.The bank expects its capital adequacy ratio to increase to over 12% after the funds are raised.
