In its regulatory filing, the bank said it issued 7.55% unsecured, subordinated, listed, rated, non-convertible, perpetual, fully paid-up, taxable AT1 bonds, structured as debentures with a face value of Rs 1 crore each. AT1 bonds are perpetual in nature and form part of a bank’s Tier I capital, offering a higher yield due to their elevated risk profile.
The issuance, labeled Series I, included a base size of Rs 1,000 crore and a green-shoe option of Rs 2,500 crore—both of which were fully subscribed, reflecting strong demand from investors.
Key Details of the Issue
Canara Bank has raised Rs 3,500 crore through its latest Additional Tier I bond issuance, giving the lender additional strength in its core capital structure. The bonds have been assigned the ISIN INE476A08266, providing a unique identifier for investors and market participants.
The bank issued a total of 3,500 bonds, each with a face value of Rs 1 crore. The entire issue opened and closed on November 28, 2025, signalling strong investor interest that allowed the bank to complete the process in a single day. The bonds were officially allotted shortly after, on December 2, 2025.
These instruments are perpetual in nature, meaning they do not carry a fixed redemption date, in line with the structure of AT1 capital instruments. Investors will receive a 7.55% annual coupon, with payments scheduled every year on December 2. As these are unsecured bonds, they come with higher risk but also offer a relatively attractive yield.
Canara Bank has proposed listing the bonds on the National Stock Exchange (NSE), which would facilitate secondary market trading and provide investors with liquidity. A total of 37 allottees participated in the issue, indicating a reasonable spread across investor categories.
This successful capital raise is expected to strengthen the bank’s Tier I capital cushion, potentially improving its financial resilience and influencing investor sentiment as the market moves into the mid-week trading session.
Canara Bank shares closed Tuesday up 1.2% at Rs 152.03, with the company’s market capitalization reaching Rs 1,37,901 crore.
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