Canara Bank to issue 10-year bonds worth Rs. 5,000 crore
What's the story
Canara Bank, a state-owned financial institution, has announced plans to issue infrastructure bonds worth Rs. 5,000 crore tomorrow (November 24).
These bonds are set to mature in 10 years, with the maturity date falling on November 29, 2033.
The initial issue size is Rs. 1,000 crore, but the bank has the option to retain oversubscription amounts of up to Rs. 4,000 crore, bringing the total potential issuance to Rs. 5,000 crore.
Details
Pay-in date and ratings for Canara Bank bonds
The pay-in date for these bonds is slated for November 29, marking the day when the exchange of bonds and funds takes place between issuers and investors.
Both CARE Ratings and India Ratings have assigned 'AAA' ratings to these bonds.
Companies often use bonds as a means to secure substantial funds at favorable interest rates for investment in expansion and various projects.
What Next?
Other recent bond issuances in India
In other recent bond market news, REC raised Rs. 2,899.69 crore through 10-year bonds with a 7.71% coupon.
On November 21, the Indian Railway Finance Corporation secured Rs. 2,404 crore via three-year bonds with a 7.68% interest rate.
Separately, the Small Industries Development Bank of India raised Rs. 4,887 crore through five-year bonds carrying a 7.83% interest.