Mumbai, February 26 State-owned lender Canara Bank raised ₹5,000 crore through the sale of bonds on Thursday.
Tier-II bonds, compliant with Basel III regulations, with a maturity of 10 years, were sold at a coupon rate of 7.24 per cent, according to market sources.
The initial issue was for ₹2,000 crore, and the remaining amount was raised using the greenshoe option, they said.
The bank received five bids for a total amount of ₹1,970 crore at a 7.20 per cent coupon, two bids each for a total value of ₹2,970 crore, ₹3,610 crore, and ₹4,430 crore at coupon rates of 7.21 per cent, 7.22 per cent, and 7.23 per cent, respectively, according to market participants.
Additionally, the bank received five bids for a total amount of ₹5,350 crore at a 7.24 per cent coupon, and two bids for a total amount of ₹5,403 crore at a 7.25 per cent coupon, market participants added.
The bank accepted the bid at 7.24 per cent, choosing to raise up to the maximum limit of ₹5,000 crore, they said.
The bonds have a call option at the end of the 5th year and thereafter every year. The bonds have been rated 'AAA' with a 'Stable' outlook by Icra and India Ratings.
The Canara Bank scrip closed 0.06 per cent up at ₹158.75 per share on the BSE on Thursday, compared to a 0.03 per cent correction in the benchmark.