Canara Bank to raise Rs.4,500-Cr via perpetual bonds

Canara Bank plans to raise up to INR 4,500 crore through the issuance of Basel III-compliant additional Tier I perpetual bonds. The fundraising includes a base issue of INR 2,000 crore and a greenshoe option to retain an additional INR 2,500 crore.The bonds will feature a call option at the end of five years. The bank currently has an existing call option on perpetual bonds worth INR 4,000 crore due before the end of the year.The bank is the second lender in the current financial year to use the Basel III-compliant additional Tier I perpetual bond route. In July, State Bank of India raised INR 4,691 crore through a similar offering.