New Delhi: State-run lender Canara Bank on Thursday raised Rs 5,000 crore through a bond sale.
The Basel III-compliant Tier-II bonds maturing in 10 years have been sold at a coupon rate of 7.24 percent, market sources said.
The base issue was Rs 2,000 crore, while the rest has been raised utilising the greenshoe option, they said.
The lender received five bids for a cumulative amount of Rs 1,970 crore at 7.20 percent coupon, two bids each for a cumulative value of Rs 2,970 crore, Rs 3,610 crore, and Rs 4,430 crore, at a coupon rate of 7.21 percent, 7.22 percent, and 7.23 percent, respectively, market participants said.
Additionally, the bank received five bids for a cumulative amount of Rs 5,350 crore at 7.24 percent coupon, and two bids for a cumulative amount of Rs 5,403 crore at 7.25 percent coupon, market participants added.
The lender accepted the bid at 7.24 percent, choosing to raise till the upper limit of Rs 5,000 crore, they said.
The bonds have a call option at the end of 5th year and thereafter every year. The bonds have been rated 'AAA' with 'Stable' outlook by Icra and India Ratings.
The Canara Bank scrip closed 0.06 percent up at Rs 158.75 a piece on the BSE on Thursday, as against a 0.03 percent correction on the benchmark.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)