Canara Bank To Raise Upto ₹4,500 Crore Via Basel III AT-1 Bonds For Business Growth
New Delhi, September 10, 2026: State-owned Canara Bank on Thursday announced raising up to Rs 4,500 crore through Basel III-compliant Additional Tier 1 (AT-1) bonds to fund business growth. This offer of issuance is part of a capital-raising proposal, where the bank has been authorised by its Board of Directors to raise up to Rs 4,500 crore through AT-1 bonds and Rs 4,000 crore through Tier 2…
New Delhi, September 10, 2026: State-owned Canara Bank recently announced plans to raise up to Rs 4,500 crore via Basel III-compliant Additional Tier 1 (AT-1) bonds to support its business growth. The bank, which has been authorized by its Board of Directors for this capital-raising proposal, will be issuing AT-1 bonds and Tier 2 bonds in the range of Rs 4,500 crore and Rs 4,000 crore respectively.
The AT-1 bonds, which will be perpetual debt instruments with a call option of 5 years, are expected to generate interest from investors, with a projected coupon rate of 7.85-7.90 percent. This capital raising initiative comes at a time when Canara Bank is witnessing continuous growth across its key business segments, including retail, agriculture, MSME & corporate, and is projected to achieve a business size of Rs 30 lakh crore.
Additionally, Canara Bank has exhibited strong liability mobilisation, recently mobilizing USD 5.80 billion through the Reserve Bank of India's FCNR(B) swap facility, further solidifying its domestic and international presence and customer confidence.
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