New Delhi: State-run Canara Bank Ltd on Friday said it will generate up to US$ 400 million (approximately Rs 2,750 crore) after it launched a bond issuance programme through its London branch. The bonds are expected to mature on March 28, 2024, the bank said. Canara Bank added that the bonds are priced at 5-year US Treasury plus 170 basis points carrying a coupon of 3.875 percent fixed payable half-yearly.
"Canara Bank launched a issuance of 5-year senior unsecured bonds (Medium Term Notes) to the extent of US$ 400 million under Medium Term Note (MTN) programme, through its London branch on 21st March 2019 value date 28th March 2019," the bank said in a regulatory filing.
"The funds raised will be utilised for deploying in long-term assets by the bank's foreign branches," it said.
Canara Bank added that the bonds will be listed on the Singapore Stock Exchange. The state-run bank's shares closed 1.63 per cent down at Rs 271.70 a piece on the BSE.
Kept afloat through higher interest income as well as a write-back of provisions made for mark-to-market losses, the lender posted a 152.5 percent rise in quarterly net profit earlier this month.