Canara Bank issues $300 million in 5-year bonds through IFSC banking unit

Canara Bank, a public-sector institution, announced that it has successfully priced $300 million in 5-year bonds. These bonds were issued under its USD 3 billion Medium-Term Note (MTN) through its IFSC Banking Unit. The 5-year bond is priced at T+125 basis points, with a semi-annual coupon rate of 4.896 per cent and a maturity date of September 11, 2029.

The proceeds from the bonds will be used by the issuer’s IFSC/GIFT banking unit for general corporate purposes. This includes meeting funding requirements and developing and expanding the issuer’s operations within the IFSC/GIFT banking unit or any other offshore branch of the issuer.

“We are delighted with the successful launch and pricing of this transaction, which enabled us to achieve a 30-bps tightening from the initial price guidance to final price guidance. The issuance was widely subscribed to by investors across Asia, the Middle East, and Europe, demonstrating strong confidence in the Canara Bank’s credit, said K. Satyanarayana Raju, MD & CEO of Canara Bank, in a release.

Canara Bank has returned to the international bond market after a 5-year halt. The last benchmark bond, issued in 2019, was priced at T+170 basis points and matured on March 28, 2024. The new 5-year bond was highly successful, said the bank. The demand for the bond exceeded the offering by more than 2.5 times, owing to strong interest from quality investors, it added.