Canara Bank has successfully completed the issuance of ₹5,000 crore Basel III compliant Tier II bonds under Series I, marking the completion of a significant capital raising initiative by the public sector lender. The bond issuance was completed through regulatory compliance under SEBI LODR Regulations 30 and 51, strengthening the bank's regulatory capital framework.

Bond Issuance Completion Details

The bank successfully raised the full amount through its bond offering, which opened and closed on the same day. The issuance details demonstrate strong market reception:

Bond Structure and Terms

The Basel III compliant Tier II bonds carry attractive terms for investors while meeting regulatory capital requirements:

Regulatory Compliance Framework

The bonds are structured as Basel III compliant Tier II instruments, ensuring adherence to international banking regulations. These subordinated bonds contribute to the bank's supplementary capital base, which forms a crucial component of the overall capital adequacy framework required for banking operations.

The ISIN INE476A08274 has been assigned to these bonds, facilitating their listing and trading on the National Stock Exchange. The bonds are rated and listed instruments, providing transparency and liquidity for investors.

Capital Strengthening Achievement

This successful ₹5,000 crore fundraising represents Canara Bank's effective capital management strategy. The completion of the bond issuance with just 12 allottees indicates strong institutional investor confidence in the bank's creditworthiness and growth prospects.

The 10-year maturity with a call option after five years provides the bank with flexibility in capital management while offering investors a competitive 7.24% annual coupon rate. This capital infusion will enhance the bank's lending capacity and support its business expansion initiatives.

Canara Bank has successfully completed its annual interest payment on Basel III compliant Additional Tier 1 bonds, demonstrating continued adherence to its debt servicing obligations. The bank paid ₹168,00,00,000 to bondholders on February 16, 2026, maintaining its commitment to timely interest payments.

Interest Payment Details

The annual interest payment was processed through multiple electronic channels to ensure efficient distribution to bondholders. The bank utilized RTGS, NEFT, IBA, and demand draft modes for crediting the interest amounts to bondholders' accounts as specified in the original terms of issue.

Payment Schedule and Compliance

The interest payment was originally scheduled for February 14, 2026, but was processed on February 16, 2026, due to the due date falling on a holiday. This adjustment aligns with the terms outlined in the Information Memorandum, which provides for payment on the next business day when the due date coincides with a non-working day.

The bank maintained its annual payment frequency without any changes, ensuring consistency for bondholders. The previous interest payment was made on February 14, 2025, maintaining the regular annual cycle.

Bond Characteristics

The bonds are classified as Non-Convertible, Taxable, Perpetual, Subordinated, Fully Paid Up, Unsecured Basel III Compliant Additional Tier 1 instruments. These bonds form part of the bank's regulatory capital structure under Basel III norms, supporting its capital adequacy requirements.

The successful completion of this interest payment reinforces Canara Bank's commitment to meeting its debt obligations and maintaining investor confidence in its financial instruments. The bank has reported no delays or non-payment issues, with the payment processed efficiently within the stipulated timeframe.