Canara Bank issues bonds to raise up to $400 mn via London branch

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Bonds carry coupon of 3.875% payable half-yearly

State-owned Canara Bank on Friday said it had launched a bond issuance programme through its London branch to raise up to $400 million (about ₹2,750 crore).

“Canara Bank launched an issuance of 5-year senior unsecured bonds [Medium Term Notes] to the extent of $400 million under Medium Term Note (MTN) programme, through its London branch on March 21, 2019, value date March 28, 2019,” the bank said in a regulatory filing.

The bonds are set to mature on March 28, 2024. “The funds raised will be utilised for deploying in long-term assets by the bank’s foreign branches,” it said.

Canara Bank said the bonds were priced at 5-year U.S. Treasury plus 170 basis points, carrying a coupon of 3.875% fixed payable half-yearly. The bonds will be listed on the Singapore Stock Exchange, it added.

Shares of the bank closed 1.63% down at ₹271.70 apiece on the BSE.

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