Canara Bank Issues $300 Million Medium-Term Notes For Five Years

Canara Bank issued $300 million in senior unsecured notes under the $3 billion medium-term note programme through the Indian Financial System Code Banking Unit.

The target pricing date is Sept. 4, 2024, according to an exchange filing posted on Sept. 2, 2024. The tenure of the instrument is five years.

The notes are expected to be rated BAA3/BBB by Moody's/Fitch, according to the filing.

According to the firm, these net proceeds are not intended to be repatriated to India or earn any income in India.

Instead, the net proceeds from the notes will be utilised by the Canara Bank's IFSC banking unit towards general corporate purposes, to meet funding requirements, and to develop and expand the issuing IFSC banking unit or any other offshore branch of Canara Bank.

The coupon rate offered is 4.896, which is to be paid semi-annually.

The proposed issue will be listed on two stock exchanges—Singapore Exchange Securities Trading Ltd. and Global Securities Market of the India INX IFSC Ltd.

The charge or security, if any, created over the assets is unsecured.

Shares of Canara Bank closed 2.58% lower at Rs 108.60 apiece on the NSE, compared to a 0.32% decline in the NSE Nifty 50.