Canara, PNB, Nabard hit Bond Street; raise Rs 8,000 cr

Mumbai: Canara Bank and Punjab National Bank on Tuesday raised funds worth ₹8,000 crore through different sets of debt instruments.

Canara Bank raised ₹5,000 crore through the issuance of 10-year infrastructure bonds at a coupon rate of 7.54%, sources said. The state-owned lender had announced a bond sale with a base size of ₹1,000 crore and a greenshoe of ₹4,000 crore.

Last week, State Bank of India had raised ₹10,000 crore worth of funds through 15-year infrastructure bonds at a coupon of 7.49%, representing a spread of just 12 basis points over a comparable benchmark security as investors showed strong demand for the lender's debt.


Meanwhile, Punjab National Bank raised ₹3,000 crore through the issuance of additional tier 1 (AT-1) bonds at a coupon rate of 8.59%. The bank received bids worth ₹4,581 crore. These bonds have a call option in September 2028.

PNB had planned a bond sale with a base size of ₹500 crore and a greenshoe option of ₹2,500 crore.

NABARD SOCIAL BONDS
The National Bank for Agricultural and Rural Development (Nabard) on Tuesday carried out the maiden sale of social bonds in the country, raising ₹1,040.50 crore through private placement. The five-year AAA-rated social bonds have a coupon of 7.63%. Nabard recently launched a Sustainability Bond Framework which seeks to finance and refinance existing or new green or social projects including access to affordable basic infrastructure and essential services.