Canara Bank raises Rs 1,000 crore in capital through AT1 bonds

Public sector lender Canara Bank has raised Rs 1,000 crore in capital through additional tier I bonds (AT 1 bonds) at a coupon of 8.07 per cent to support business growth.

The issue size was Rs 250 crore with a green shoe option of Rs 750 crore. It has a call option in March 2027.

Bond market sources said the interest in the paper by the Bengaluru-based lender was strong with a demand book size of 2.7 times.

The coupon of 8.07 per cent is a fine rate, given the adverse market conditions shaped by volatility. The previous AT1 offering from Canara Bank