Canara Bank plans to raise Rs 4,500 crore through AT-1 bonds next week

Canara Bank is planning to tap the market next week to raise up to Rs 4,500 crore through Basel III-compliant additional tier 1 (AT-1) bonds.

The issuance of this bond is likely at 7.85%-7.90% coupon, the bank said citing market expectations.

This is part of its Rs 8500 crore capital-raising plan for the fiscal. The bank would be looking to raise Rs 4000 crore through tier 2 bonds in the future.


The proposed AT-1 bonds will be perpetual debt instruments with a call option of five years, subject to regulatory clearance.