Canara Bank to raise up to $1 bn from overseas mkt next week

State-owned Canara Bank today said it will begin the process of raising up to $1 billion (about Rs 5,487 crore) through bonds next week from the overseas market to fund global business expansion.

"We are targeting to raise $1 billion from bonds. We are going for roadshows to Singapore, Hong Kong and London between May 27 and May 31. The issue will be out on those days," Canara Bank Chairman and Managing Director R K Dubey said here.

The funds raised would be utilised for growth of overseas business of the bank, he said.

The bank has five overseas branches at London, Leicester, Shanghai, Manama and Hong Kong.

As part of its global expansion plan, the Bangalore-based bank intends to open branches at 9 nine overseas destinations.

Dubey said the bank has already got licence for opening a branch at Johannesburg in South Africa.

Besides, he said the bank has plans to open offices in Sao Paulo (Brazil), Dar-es-Salaam (Tanzania), Tokyo (Japan), Abuja (Nigeria), Jeddah (Saudi Arabia), Qatar Financial Centre (Qatar), Frankfurt (Germany) and New York (the USA) by March 2015.

Talking about loan default by Deccan Chronicle Holdings Ltd (DCHL) Dubey said: "We have filed a suit. We have gone for a complaint to the CBI we have to recover our dues...They have started investigations."

Lenders, including Canara Bank, have initiated action against DCHL for default in payments as well as for allegations of fund misuse. The group is engaged in printing and publishing of 'Deccan Chronicle', 'Financial Chronicle', 'Andhra Bhoomi' and 'Asian Age'.