Canara Bank’s Basel III Additional Tier I NCD
Canara Bank launches its Basel III Additional Tier I NCD issue, offering investors a stable long-term debt instrument aimed at strengthening the bank’s capital adequacy and supporting future growth.
Canara Bank’s Basel III Additional Tier I NCD
Mumbai, Nov 27
The state-run lender, Canara Bank is going for Basel III Additional Tier I NCD. The Bid Submission will happen on November 28 from 12:00pm to 1:00pm on NSE EBP, reliable sources said.
The Issue Size stands at Rs 1000Crs + Rs. 2500 Crs (Green Shoe Option). Pay in and Allotment Date for the Perpetual Bond is December 02.
Credit Rating of the issue is AA+ by Care and Icra.
The Call Option will be on the 5th Anniversary from the deemed date of allotment or any anniversary date thereafter. Bid Book Type will be in the form of Closed Bidding and Allocation Method is Uniform Yield. Minimum application size is Rs 1 Cr and in multiples of Rs 1 Cr thereafter. Only QIB can participate.
Talking to Bizz Buzz, Venkatakrishnan Srinivasan, founder of Rockfort Fincap, says, “It’s literally raining bonds ahead of the policy. I’ve been flagging for some time that we should expect a clear shift toward longer-tenor issuances, and that phase seems to be unfolding now.”
We already saw Axis Bank and PFC tap the long end yesterday, and the trend is only accelerating. From tomorrow, Canara Bank, ICICI Bank, IRFC and ICICI Prudential Life Insurance are all coming with 10–15 year papers, collectively amounting to nearly ₹13,500 crore. More names are likely to queue up as issuers look to lock in duration at these levels. An interesting phase for investors—and an encouraging one for the bond market. Happy investing, he added.
