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Canara Banks to raise Rs 1,000 cr through bonds

The state-run bank said it plans to raise the amount via bonds issued at a coupon rate of 8.62 per cent for the first 10 years, thereby strengthening its capital resources.

twitter-logo PTI   Mumbai     Last Updated: October 7, 2010  | 17:18 IST

State-run lender Canara Bank on Monday said it plans to raise Rs 1,000 crore through issue of bonds to increase its capital resources.

"The bank is coming out with an issue of Upper Tier-II bonds to augment capital resources. This would help strengthen the capital adequacy and enhancing long-term resources of the bank," Canara Bank informed the Bombay Stock Exchange.

The bonds will be issued at a coupon rate of 8.62 per cent for the first 10 years, it said.

"They should be fully paid up, unsecured and free of any restrictive clauses," the bank said.

The tenor of the bond, the bank said, would be 15 years from the deemed date of allotment. The pay-in dates from September 27 to September 28.

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