Canara Bank raises ₹5,000 crore through unsecured bonds

Public sector Canara Bank has said that it has raised ₹5,000 crore in debt which qualifies as Tier-II bonds for regulatory purposes.

The bond is of face value of ₹1 crore each, and carries a coupon of 7.24 per cent to be paid on 27 February annually. Cumulatively, the bonds are unsecured against assets, subordinated, listed, rated, non-convertible, redeemable, fully-paid-up, taxable and Basel III compliant.

The redemption date for the issue is 2036, with a call option at the end of five years or every anniversary thereafter.

There were 12 investors in this issue, and the bank proposes to have the bonds listed on the National Stock Exchange.