Canara Bank gets NSE listing approval for ₹2,042 crore AT1 bonds
- Canara Bank received NSE listing approval for its AT1 bonds on September 21, 2026
- The ₹2,042 crore issue includes a base of ₹2,000 crore and a ₹42 crore green shoe option
- Bonds carry a fixed coupon rate of 8.10% and are perpetual in nature
- The bank secured interest from 29 allottees who submitted 111 bids
*this image is generated using AI for illustrative purposes only.
Canara Bank received listing approval for its Additional Tier I (AT1) bonds from the National Stock Exchange on September 21, 2026. The public sector lender completed the ₹2,042 crore issuance on September 16, 2026.
The issue included a base amount of ₹2,000 crore and a green shoe option of ₹42 crore. Although the total issue size was capped at ₹4,500 crore, the bank accepted bids only up to the ₹2,042 crore limit. The bonds carry a fixed coupon rate of 8.10% and are unsecured, subordinated, and perpetual in nature.
Issue Structure and Terms
The bank issued debentures with a face value of ₹1 crore each. Allotment is deemed effective as of September 18, 2026, which also serves as the pay-in date. Interest payments will be made annually on September 18 every year.
| Parameter | Details |
|---|---|
| Issue Size | ₹2,042 crore |
| Coupon Rate | 8.10% |
| Tenor | Perpetual |
| Total Bids | 111 |
| Allottees | 29 |
| Listing | NSE |
Call Option and Maturity
The instruments are perpetual but include an issuer call option. Canara Bank may redeem the bonds starting from September 18, 2031, marking the fifth anniversary of the deemed allotment date. The bank retains the right to call the bonds on any subsequent anniversary date.
Regulatory Compliance
The issuance adheres to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bonds are listed on the National Stock Exchange of India Ltd following the completion of allotment procedures.
Historical Stock Returns for Canara Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.15% | +1.88% | -2.57% | -15.29% | -3.90% | +216.20% |
How will Canara Bank's decision to forgo the full ₹4,500 crore issuance limit impact its future capital raising strategies and Tier I capital adequacy ratios?
What does the 8.10% coupon rate indicate about current investor sentiment towards public sector bank AT1 bonds compared to other fixed-income instruments?
How might the upcoming call option window in 2031 influence Canara Bank's long-term debt management and refinancing plans?
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