Canara Bank to issue TIER II Bonds

Canara Bank has announced that the Bank is issuing Tier II Bonds in the nature of subordinated debt to augment the capital resources. Details are as under:

Issue amount - Rs 575 Crs.

Coupon Rate - 8.85%

Face Value Per Bond - Rs 10 Lacs

Coupon Payment - Annually

Interest on Application Money - @ coupon rate subject to deduction of TDS as applicable

Tentative schedule - Opening / Closing - September 12, 2006 & September 14, 2006

Deemed date of allotment - September 15, 2006

Rating - AAA by CRISIL (Stable) & "LAAA" by ICRA

Listing - At NSE

Nature of Bonds - Promissory Notes

The Bank mandated IDBI Capital Market Services Ltd, Citi Bank, ICICI Bank Ltd, UTI Bank Ltd, ABN Amro Bank besides the Bank´s Corporate Merchant Banking Division as arrangers to the issue.

Source : Equity Bulls

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