Canara Bank plans to raise ₹3,500 cr via AT1 bonds

CANARA BANK PLANS to raise ₹3,500 crore through additional tier 1 (AT1 bonds) bonds on November 25, sources said. This marks the first AT1 bond issuance in the current financial year. The issue includes a base size of ₹1,500 crore and a green shoe option of ₹2,000 crore.

- CHRISTINA TITUS

“We are negotiating with market participants. We expect the cutoff yield to come in the range of 7.45-7.50%,” said a source. Bonds will have a five-year call option. Canara Bank’s AT1 bonds carry a rating of AA+/Stable from agencies.