Canara Bank to tap overseas market

Canara Bank has announced that the Bank finalised its plans to raise capital funds overseas through Medium Term Notes (MTN) Programme. As a part of this, the Bank has firmed up plans to raise hybrid capital (Tier I) abroad and Upper Tier II Bonds in International Market and in domestic market in tranches. The Bank proposes to raise US $ 100 million by way of Hybrid Capital Tier I Bonds and US $ 200 million by way of Upper Tier II Bonds in the first tranche and has appointed Citi Group Global Capital Market, Hongkong and Shanghai Banking Corporation Ltd, ABN Amro Bank N.V. and UBS-AG as mandated lead managers to the issue.

The Banks has plans to raise a combination of Capital Instruments of Upper Tier II Bonds., Hybrid Capital Bonds and with the funds so raised the Banks expects the capital adequacy ratio (CAR) to be above 12%. The Capital funds raised will be utilized for capital requirements and also for funding overseas expansion and long term funds requirements for overseas operations.

Source : Equity Bulls

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