India New Issue-Canara Bank to issue perpetual bonds, bankers say

Canara Bank

23/08/2024 06:21

MUMBAI, Aug 23 (Reuters) - India's Canara Bank  CNBK.NS  plans to raise 30 billion
rupees ($357.66 million), including a greenshoe option of 20 billion rupees, through the sale of
additional tier-I perpetual bonds, three merchant bankers said on Friday.
    The state-run lender has invited coupon and commitment bids from bankers and investors on
Tuesday, they said. 
    The issue will have a call option at end of 10 years. In February, Canara Bank raised 20
billion rupees via a perpetual bond issue at the 8.40% coupon.
    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. 23
                                                                      
   Issuer   Tenure        Coupon (in %)  Issue size (in  Bidding      Rating
                                         bln rupees)*    date         
                                                                      
 Canara        perpetual  To be decided           10+20  Aug 27       AA+ (Crisil,
 Bank                                                                 Icra)
 
*Size includes base plus greenshoe for some issues



($1 = 83.8780 Indian rupees)

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