Canara Bank to Issue Upper Tier II Bonds

Canara Bank has announced that the Bank has finalized plans to come out with an issue of Upper Tier II Bonds in the nature of subordinated debt to augment the capital resources. Details are furnish as under:

1. Issue Amount - Rs 500 Crore

2. Tenor - 15 years

3. Call Option - At the end of 10 years with approval of RBI

4. Coupon rate - 9%

5. Face value per bond - Rs 10 lakhs

6. Coupon payment - Annually

7. Step up Coupon - 50 bps if call option is not exercised i.e. @ 9.50% p.a. from 11th year onwards

8. Tentative schedule - Opening / Closing - September 15, 2006

9. Rating - AAA by CRISIL (Stable)

10. Listing - At NSE

11. Nature of bonds - Promissory Notes

Source : Equity Bulls

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