Canara Bank, PNB likely to issue Rs 3,000-crore AT1 bonds this week

AT1 issuances are likely to cross Rs 20,000 crore mark as banks rush to tap capital markets

State-owned Canara Bank and Punjab National Bank are likely to raise capital worth a total of around Rs 3,000 crore through the issuance of additional tier-1 (AT1) bonds this week, sources told Business Standard.

Canara Bank is expected to raise Rs 2,000 crore via AT1 bonds on Wednesday, sources said, adding that the lender’s bond sale includes a greenshoe option of Rs 1,500 crore.

Canara Bank’s bonds would be rated AA+, the sources said.

While the dates for Punjab National Bank’s issuance are not yet clear, the state-owned lender is expected to tap the debt capital market for AT1 bond issuance of Rs