Canara Bank on Tuesday invited bids from merchant bankers to manage its $350-500 million issue of senior unsecured/tier-II capital bonds under its medium-term note (MTN) programme.
“The issue size may vary based on various factors including, but not limited to, management discretion and the indicative pricing,” Canara Bank said in a public notice.
“Further, the bank intends to initiate the process relating to the selection and appointment of JLMs (joint lead managers) to prepare the requisite documents including the offering circular and to undertake various activities in relation to the MTN bonds issue.”
In October 2017, Canara Bank had issued dollar bonds to raise $200 billion under its $2-billion MTN programme. This was preceded by a $400-million issue in August 2017.
Last month, State Bank of India raised $1.25 billion through bonds from overseas market to fund its business expansion. The bank concluded the standalone issuance of fixed-rate senior unsecured notes in two tranches of $850 million for five years with a coupon of 4.375 per cent and $400 million for three years with a coupon of four per cent payable semi-annually. —FE