Canara Bank to raise Rs 1,500 crore via private bonds

NEW DELHI: Bangalore based public sector lender Canara Bank today said it will raise additional capital worth Rs 1,500 crore through private placement of bonds.

The issue will be in compliance with global capital adequacy norms, Basel-III.

"The Bond Committee...decided to raise additional tier-I instruments amounting to Rs 1,500 crore through issue of Basel-III complaint additional tier-I perpetual bonds by way of private placement," Canara Bank said in a filing to the BSE.

India Ratings (Ind-Ra) has assigned the bond issue a low credit risk and high safety 'IND AA' rating, while ICRA assigned a stable outlook with [ICRA] AA (hyb) rating, it added.

Canara Bank will present its third quarter earnings on Wednesday. The bank's scrip closed 2.63 per cent up at Rs 454.75 on the BSE today.