Canara Bank to Strengthen Capital with Rs 5,000 Crore Tier 2 Bonds

State-owned Canara Bank plans to issue Rs 5,000 crore in Tier 2 bonds by February 26 to bolster its capital and support growth. The bond includes a Rs 2,000 crore base and a Rs 3,000 crore green shoe option via the National Stock Exchange.

State-owned Canara Bank has announced its intention to enter the Tier 2 bond market with a significant Rs 5,000 crore issuance aimed at fortifying its capital reserves and fueling future expansion initiatives.

Slated for launch on February 26, the bond offering will take place via the Electronic Bidding Platform of the National Stock Exchange, as confirmed in a statement from the bank.

The planned issuance will see Canara Bank raising funds through Basel III-compliant Tier 2 bonds, incorporating a primary issue of Rs 2,000 crore alongside a Rs 3,000 crore green shoe option, in order to adeptly cater to the robust demand from investors.

(With inputs from agencies.)