Canara Bank raises Rs 3,000 crore via issue of tier-II bonds

Public sector lender Canara Bank has raised Rs 3,000 crore by issuing Basel-III compliant tier-II bonds to augment capital base and fund growth.

"The bank has successfully raised Rs 3,000 crore under Basel-III compliant tier-II bonds with a coupon of 8.40% per annum," Canara Bank said in a BSE filing on Thursday.

The bank said its Bond Committee had decided to raise Basel-III compliant tier-II bonds amounting to Rs 1,000 crore with an option to retain over-subscription, at the sole discretion of the bank for an amount up to Rs 2,000 crore on private placement basis.

The issue was opened on April 18, 2016 and closed on April 27, 2016.

Earlier in April, Canara Bank had said it would come out with the issuance of bonds to augment capital resources.