Canara Bank set to become second Indian lender to eye perpetual debt fundraise in FY27
Canara Bank set to become second Indian lender to eye perpetual debt fundraise in FY27 By Dharamraj Dhutia
MUMBAI, Sept 10 (Reuters) - India's Canara Bank CNBK.NS is set to become the second lender in this financial year to tap the Basel III-compliant additional Tier I perpetual bond route, after the nation's largest bank raised such funds in July, three bankers said on Thursday.
Here are a few details:
The state-run bank plans to raise up to 45 billion rupees ($473.19 million) through perpetual bonds, the bankers said, requesting anonymity because they are not authorized to speak to the media.
The state-run bank will eye a base size of 20 billion rupees, with a greenshoe option to retain an additional 25 billion rupees.
Canara Bank did not reply to a Reuters request for comment.
The issuer is likely to complete the fundraising before the end of September.
The issue will have a call option at the end of five years.
In July, State Bank of India had raised 46.91 billion rupees through the sale of perpetual bonds, with a call option at the end of five years.
Late last year, Canara Bank had raised 35 billion rupees from a similar instrument at a 7.55% coupon.
Canara Bank has a call option on perpetual bonds worth 40 billion rupees before the end of this year.
($1 = 95.1000 Indian rupees)
(Reporting by Dharamraj Dhutia; Editing by Rashmi Aich)
((DharamrajLalit.Dhutia@thomsonreuters.com;))
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