)
Bangalore-based public sector lender Canara Bank has raised Rs 1,500 crore through issue of unsecured, non-convertible, redeemable Basel-III compliant Tier-II bonds. The Bank’s bond issue, which opened on December 30, 2013, closed today.
The funds raised through the Tier-II bond issue will be used to augment the capital resources, the Bank said in a statement to Bombay Stock Exchange.
Each bond has a face value of Rs 10 lakh each and carries a fixed coupon rate of 9.73%. These bonds will be listed on the wholesale debt market segment of National Stock Exchange of India.
Earlier this week, the Bank also raised Rs 500 crore by allotting 18.25 million equity shares on preferential basis to the government of India. The bank has allotted the equity shares with a face value of Rs 10 each with a premium of Rs 263 per share.
With this preferential allotment, the shareholding of the government has gone up to 69% from 67.72%.
The Bank's capital adequacy ratio under Basel-III stood at 10.62% as on September 30, 2013.
