Canara Bank has raised ₹1,500 crore in Basel III-compliant Additional Tier 1 (AT1) bonds at a coupon rate of 8.40% p.a. This was the first AT1 bond issue by the bank after the new SEBI regulations.
The issue received an overwhelming response from investors, with bids worth over ₹3,400 crore against the base issue size of ₹500 crore. Based on the feedback, the bank has decided to accept ₹1,500 crore at a coupon rate of 8.40% p.a., according to a statement from the bank on October 25.
AT1 equipment is perpetual in nature. However, as per the Canara Bank release, it can be recalled by the issuer after five years or any anniversary date thereafter.
The AT1 bond of the bank is rated AA+ by CRISIL and AA by India Ratings & Research.
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