1 hr ago
Canara Bank Plans ₹4,500 Crore AT-1 Bond Raise
Canara Bank wants to raise money by selling a special type of bond.
It may collect up to ₹4,500 crore through AT-1 bonds.
The bank also has approval to raise up to ₹4,000 crore through another type of bond called Tier 2 bonds.
The AT-1 bonds will not have a fixed end date, but the bank may be able to repay them after five years if regulators allow it.
Investors may receive interest of about 7.85%-7.90%.
The proposed issue is expected to be offered through the NSE on September 16.
Canara Bank says it will use the stronger capital position to support business growth.
The bank also said it has mobilised $5.80 billion through an FCNR(B) swap facility.
Canara Bank’s board approved raising up to ₹4,500 crore through Basel III-compliant AT-1 bonds.
The broader fundraising plan also includes up to ₹4,000 crore through Tier 2 bonds.
The AT-1 bonds will be perpetual instruments with a five-year call option, subject to regulatory approval.
The issue is expected to be offered on the NSE electronic bidding platform on September 16, with an anticipated coupon rate of 7.85%-7.90%.
Canara Bank said the fundraising will strengthen capital and support growth as its business approaches ₹30 lakh crore.
- Who
- State-owned Canara Bank.
- What
- The bank plans to raise up to ₹4,500 crore through Basel III-compliant AT-1 bonds, as part of a wider proposal that includes ₹4,000 crore in Tier 2 bonds.
- Where
- The proposed issue is expected to be conducted through the National Stock Exchange of India’s electronic bidding platform.
- When
- The fundraising plan was announced on September 10, 2026; the AT-1 issue is expected to be offered on September 16 from 12:00 p.m. to 1:00 p.m.
- Why
- To strengthen Canara Bank’s capital position, maintain financial resilience and support business growth.
Key facts
- AT-1 fundraising
- Up to ₹4,500 crore
- Tier 2 fundraising
- Up to ₹4,000 crore
- Bond structure
- Perpetual debt instruments with a five-year call option, subject to regulatory clearance
- Expected coupon
- 7.85%-7.90%
- Expected bidding date
- September 16, from 12:00 p.m. to 1:00 p.m.
- Credit ratings
- AA+; Stable from ICRA Ratings and India Ratings
- Business target
- The bank is on track to reach a business size of ₹30 lakh crore
- FCNR(B) mobilisation
- $5.80 billion
Quotes
Canara Bank
The bank, speaking through its release about the proposed bond issuance
“The proposed AT-1 issuance will further strengthen the bank’s capital position and provide additional headroom to support its business growth while maintaining a strong capital base and financial resilience.”
financialexpress.com
Sources
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