Canara Bank to raise up to Rs 3,500 crore through Tier II bonds

Public sector lender Canara Bank plans to raise upto Re 3,500 crore through tier II bonds in tranches for enhancing capital adequacy ratio to meet growth requirements.

Its last capital raise via Tier II bonds for Rs 2,500 crore was in December 2021 at coupon of 7.09 per cent. It is likely to come to market on August 25, 2022 with the first tranche of tier II bonds (10-year tenure) having primary size of Rs 1,000 crore. The proposed offering is expected to carry a green shoe option of Rs 1,000 crore, bond market sources said. 

Rating agency ICRA has assigned AAA