New Delhi, February 24: State-owned Canara Bank on Tuesday announced plans to tap the Tier 2 bond market with a ₹5,000 crore fundraising initiative aimed at strengthening its capital base and supporting future growth.
Tier 2 Bond Issue Scheduled on NSE Platform
The proposed bond issue is scheduled for February 26 and will be conducted on the Electronic Bidding Platform of the National Stock Exchange, according to a statement issued by the bank.Canara Bank intends to raise funds through Basel III-compliant Tier 2 bonds, reinforcing its capital structure in line with regulatory norms.
Structure of the ₹5,000 Crore Fundraising Plan
The fundraising plan comprises:- Base Issue: ₹2,000 crore
- Green Shoe Option: Up to ₹3,000 crore
Capital Strengthening and Growth Strategy
The proposed issuance is part of the bank’s strategy to bolster its capital base, enabling it to support future business expansion and maintain compliance with Basel III capital adequacy requirements.With the February 26 issuance, Canara Bank is set to access the debt capital markets to enhance its financial resilience and sustain its growth trajectory.
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