Canara Bank to issue Tier-I NCDs today
Issue size at Rs1,000 cr + Rs2,500 cr with Green Shoe Option
image for illustrative purpose
Mumbai: The state-run lender Canara Bank is going for Basel-III Additional Tier-I NCD. The Bid Submission will happen on November 28 from 12noon to 1pm on NSE EBP, reliable sources said. The Issue Size stands at Rs1,000 crore + Rs2,500 cr (Green Shoe Option). Pay in and Allotment Date for the Perpetual Bond is December 2. 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 Rs1 cr and in multiples of Rs1 cr thereafter. Only QIBs 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 recently, 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 Rs13,500 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.
