Canara Bank to raise Rs.500 Crores through issue of Upper Tier II Bonds

Canara Bank has announced that the Bank has proposed to come out with an Issue of Subordinated (Upper TIER II) for Rs 500 Crore. Details are furnished as under:

Issue Amount (Rs in Crores) - 500.00

Tenor - 15 years

Coupon rate - 10.00% p.a.

Coupon Payment - Annually

Rating - AAA by CRISIL

Listing - At NSE

Nature of Bonds - Promissory Notes

Call Option - At the end of 10 years

Step up Coupon if Call option is not exercised - 50 bps from 11th year till redemption

Interest Deferral Clause - As per RBI guidelines

Issue Schedule - March 20, 2007 to March 22, 2007

Deemed date of Allotment - March 23, 2007

Trustee - Vijaya Bank, Bangalore

Source : Equity Bulls

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