Mumbai: India's Canara Bank is likely to raise funds through the issuance of Basel III compliant additional Tier I perpetual bonds this month, which would be its first such issue in more than a year, three merchant bankers said on Friday.
The state-run lender may look to raise around 20 billion rupees ($240.06 million) to 30 billion rupees via the bonds and may invite bids in the middle of December, the bankers added.
The issue is likely to have a call option at end of five years.
The bank has yet to announce the bond issue and did not respond to a Reuters' email seeking comment.
No lender has raised funds through perpetual bonds in the current quarter.
Punjab National Bank had sold 30 billion rupees through this route in September at 8.59% coupon.
Canara Bank had last raised 20 billion rupees in September 2022 through additional Tier I perpetual bonds at 7.99% coupon.
The lender had also raised 100 billion rupees through two issuances of infrastructure bonds maturing in 10 years in September and November.
(Published 01 December 2023, 09:27 IST)
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