Canara Bank announced the successful completion of its issue for Basel III Compliant Tier II Bonds, Series I, aggregating ₹5,000 crore. The bonds carry a fixed coupon rate of 7.24% per annum. The issuance, which closed on February 26, 2026, saw 12 allottees receive unsecured, subordinated, and taxable instruments. The bonds are slated for allotment on February 27, 2026, and redemption on February 27, 2036.
Successful Issuance of Tier II Bonds Completed
Canara Bank has successfully raised Rs.5,000 crore through the issuance of Basel III Compliant Tier II Bonds, Series I. This funding aims to augment the bank’s capital structure, detailed as the base issue of Rs.2,000 crore plus a green shoe option of Rs.3,000 crore, totaling the accepted amount of Rs.5,000 crore.
Key Bond Instrument Details
The instrument is characterized as 7.24% Unsecured, Subordinated, Listed, Rated, Non-Convertible, Redeemable, Fully-paid-up, Taxable, Basel III Compliant Tier II Bonds. A total of 5,000 Bonds, each with a face value of Rs.1 crore, were issued. The bonds are classified as Unsecured.
Timeline and Servicing
The Issue Opened and Closed on February 26, 2026. The Date of Allotment is set for February 27, 2026. The bonds carry a coupon rate of 7.24%, with interest scheduled to be paid annually on February 27th of every year until maturity or the call option date. The final Date of Redemption is February 27, 2036, though a call option is available at the end of five years or every anniversary thereafter. The bank has proposed that the bonds be listed on the NSE.
Source: BSE
