Canara Bank, a public sector lender is planning to raise Rs 400 crore with a greenshoe option of another Rs 200 crore through a tier I bond issue. The issue will be unsecured non-convertible sub-ordinated perpetual bonds in the nature of promissory notes. The main objective of the bond issue is to augment tier I capital for strengthening the capital adequacy and enhancing long term resources of the bank.
The bond issue has received AAA rating from Crisil and BWR AAA+ from Brickwork Ratings. The face value will be Rs 10,000 per debenture and the issue price will be at par, with no put option available. However, it will have a call option which may be exercised after the instrument has run for at least 10 years and will be exercised only with prior approval of RBI.
Content Guide
