Canara Bank is all set to raise $200 million through the issue of upper tier-II foreign currency bonds. The issue will enable the bank to maintain its capital adequacy ratio (CAR) above 12 per cent. The bank's CAR is now at 12.27 per cent. | |
| A spokesperson for Canara Bank said the bonds issue will also aid it in meeting the Basel-II norms, which mandate that the CAR should be above 9 per cent. Canara Bank will also use a part of the proceeds for its overseas expansion programme. |
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| This is the first such instrument that Canara Bank is going in for under its recently established $1 billion Medium Term Note Programme. According to officials at Canara Bank, the bank has the option to raise this quantum over a period of 10 years. |
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| The bank announced that it expected ratings Baa2BB- from Moody's/Fitch and has mandated ABN Amro, Citigroup, HSBC and UBS as joint book runners for its inaugural issue. |
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| Roadshows will take place in Hong Kong on November 13, in Singapore on November 14 and in London on November 15. The launch and pricing will decided at a later stage, subject to market conditions, the spokesperson added. |
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