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Canara Bank to generate US$400 million through bond issuance programme

Canara Bank says the bond priced at 5-year US Treasury plus 170 basis points, carrying a coupon of 3.875 percent fixed payable half yearly
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.

Medium Term Note programme

"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.

Bonds to be listed on Singapore Stock Exchange

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.