Canara Bank has, in its maiden issuance of long term infrastructure bonds, raised Rs 5,000 crore at a coupon rate of 7.54% per annum.
“The issue received an overwhelming response from investors, with bids for more than Rs 14,180 crore against a base issue size of Rs 1,000 crore and a green shoe option of Rs 4,000 crore,” the company said in a press release.
The bank has issued 500,000 non-convertible, taxable, redeemable, unsecured, fully paid up long-term bonds with a face value of Rs 100,000 each.
The bonds are proposed to be listed on the National Stock Exchange.
The issue closed on September 27.
The bank’s long-term infrastructure bonds are rated as “AAA/Stable,” by Care Ratings and India Ratings and Research.
Recently, various banks have been tapping the bond market to raise funds.
Last week, State Bank of India (SBI) had raised funds worth Rs 10,000 crore through 15-year infrastructure bonds at a coupon rate of 7.49%.
Additionally, Punjab National Bank raised Rs 3,000 crore through the issuance of additional tier-1 bonds at a coupon rate of 8.59%.