Dec 24 Canara Bank on Friday said it has raised Rs 2,500 crore by issuing Basel-III compliant bonds for a total of 10 allottees.
The bank has successfully raised its Basel-III-compliant Tier II Series I bonds, Canara Bank said in a regulatory filing.
“Our bank came with the issuance of Rs 2,500 crore of tier-II bonds on December 12, 2021. The bank received a total offer of Rs 9,374 crore, of which the entire issuance of Rs 2,500 crore was accepted at a coupon rate of 7.09 percent per year,” the bank said.
The issue opened on December 23, 2021 and closed on the same day. The bonds were allocated to a total of 10 allotments on December 24, 2021.
To comply with Basel III capital regulations, banks worldwide must improve and strengthen their capital planning processes.
These standards are being implemented to address concerns about potential stresses on asset quality and the resulting impact on banks’ performance and profitability.
Shares of Canara Bank settled at Rs 193.90 each on BSE, down 3.27 percent from the previous close.