Canara Bank to issue perpetual bonds -traders
MUMBAI (Reuters) - India's Canara Bank plans to raise at least 5 billion rupees ($62.87 million) through sale of Basel III-compliant additional Tier I perpetual bonds, three merchant bankers said on Monday.
The state-run bank has invited coupon and commitment bids from bankers and investors on Wednesday, they said.
The notes are rated AA+ by India Ratings and ICRA, and the issue will close for subscription later this week.
The issue has a call option at end of five years and will also have a greenshoe option to retain an additional 15 billion rupees.
In August, the lender had raised 20 billion rupees through sale of Basel III-compliant Tier II bonds maturing in 10 years at an annual coupon of 7.48%. This issue had a call option at end of five years.
($1 = 79.5250 Indian rupees)
(Reporting by Dharamraj Lalit Dhutia; Editing by Neha Arora)