Synopsis: Canara Bank has successfully raised USD 300 million through its IFSC Banking Unit at GIFT City, marking its return to the international bond market after five years. The bond, with a maturity period of five years and a coupon rate of 4.896%, received strong interest from investors across Asia, the Middle East, and Europe.
In a significant financial development, state-owned Canara Bank announced that it has raised USD 300 million by issuing bonds through its International Financial Services Centre (IFSC) Banking Unit, located in GIFT City, Gandhinagar.
The bonds are part of Canara Bank's broader Medium Term Note (MTN) Programme and have a five-year maturity with a semi-annual coupon rate of 4.896%.
The proceeds from the bond issuance will be allocated towards general corporate purposes for the bank's IFSC unit and its offshore branches, contributing to the bank’s expansion plans and addressing its funding needs.
This issuance marks Canara Bank's return to the global bond market after five years, with its last issuance maturing in March 2024.
The bond issuance saw strong demand, with an oversubscription of more than 2.5 times, demonstrating investor confidence in Canara Bank's creditworthiness.
The transaction involved over 72 investors, with significant participation from Asian (73%) and European (27%) investors.
It is noteworthy that fund managers and insurance companies collectively accounted for 41% of the investor base.
K. Satyanarayana Raju, MD & CEO of Canara Bank, expressed his satisfaction with the success of the bond issuance.
"The strong demand and pricing reflect the trust and confidence investors have in Canara Bank," he stated.
The bond offering achieved a 30 basis points tightening from the initial to final pricing, further underscoring the favorable market reception.
The issuance was led by BNP Paribas, DBS Bank Ltd, and MUFG as joint bookrunners and lead managers, cementing Canara Bank's reputation in the global debt market.
In conclusion, Canara Bank's successful USD 300 million bond issuance is a testament to the bank's robust financial standing and strategic focus on international expansion.
The positive market response highlights investor confidence in the bank's credit and future prospects.
This move will further bolster Canara Bank's financial capabilities, allowing it to meet corporate objectives and strengthen its global presence.
Disclaimer: The information provided in this article is based on publicly available reports and regulatory filings. The views expressed are for informational purposes only and should not be construed as financial advice. Always consult a qualified financial professional for guidance specific to your financial situation.
