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Canara Bank issues bonds from London branch to raise up to $400 mn

The bonds are set to mature on March 28, 2024.

Canara Bank issues bonds from London branch to raise up to $400 mn

New Delhi: State-owned Canara Bank Friday said it has launched a bond issuance programme through its London branch to raise up to USD 400 million (about Rs 2,750 crore).

"Canara Bank launched an issuance of 5-year senior unsecured bonds (Medium Term Notes) to the extent of USD 400 million under Medium Term Note (MTN) programme, through its London branch on 21st March 2019 value date 28th March 2019," the bank said in a regulatory filing.

The bonds are set to mature on March 28, 2024.

"The funds raised will be utilised for deploying in long-term assets by the bank's foreign branches," it said.

Canara Bank said the bonds are priced at 5-year US Treasury plus 170 basis points carrying a coupon of 3.875 per cent fixed payable half yearly.

The bonds will be listed on the Singapore Stock Exchange, it added.

Shares of the bank closed 1.63 per cent down at Rs 271.70 a piece on the BSE.