India New Issue-Canara Bank likely to issue perpetual bonds for FY25 by Aug end

Canara Bank

21/08/2024 04:32

MUMBAI, Aug 21 (Reuters) - India's Canara Bank  CNBK.NS  is set to
kickstart the cycle of perpetual bond issue for the current financial year, as it
plans to come up with an issue by end of this month, three merchant bankers said on
Wednesday.
    The state-run lender could raise around 40 billion rupees ($477.37 million)
from additional tier I perpetual bonds, with a call option at the end of five
years, the bankers added. 
    In February, Canara Bank raised 20 billion rupees via a perpetual bond issue at
the 8.40% coupon.
    The bank did not respond to a Reuters query seeking comment.   
    Last week, Reuters reported lenders may start tapping this route to raise funds
after India eased norms for how mutual funds value perpetual bonds. 
 
 Here is the list of deals reported so far on Aug. 21: 
                                                                      
   Issuer   Tenure        Coupon (in %)  Issue size (in  Bidding      Rating
                                         bln rupees)*    date         
                                                                      
 Canara        perpetual  To be decided              40  To be        AA+ (Crisil,
 Bank                                                    decided      Icra)
 
*Size includes base plus greenshoe for some issues

($1 = 83.7930 Indian rupees)

 (Reporting by Dharamraj Dhutia and Bhakti Tambe; Editing by Janane Venkatraman
)
 ((Dharamraj.dhutia@tr.com))