The proposed AT-1 bonds would be perpetual debt instruments with a call option of 5 years, subject to regulatory clearance. These bonds have been rated as “AA+; Stable” by ICRA Ratings and “AA+; Stable” by India Ratings, claimed the bank.
The proposed AT-1 bond issuance is expected to be offered via the electronic Bidding Platform (EBP) of the NSE on September 16, 2026, from 12:00 p.m. to 1:00 p.m. The issuance of this bond is anticipated to generate much interest among investors, with market expectations for a coupon rate of 7.85%-7.90%.
The proposed capital raising comes at a time when Canara Bank continues to witness sustained growth across its key business segments. Currently, Canara Bank is on track to achieve a business size of ₹30 lakh crore, backed by continuous growth in Deposits & Advances across the Retail, Agriculture, MSME & Corporate segments.
According to the bank, it has also exhibited strong liability mobilisation and customer confidence in the recently announced FCNR(B) swap facility by the Reserve Bank of India, whereby the Bank has been able to mobilise a sum of $ 5.80 billion. The strong mobilisation underscored the Bank’s extensive domestic and international presence and the continued confidence of its customers, it further said.
The proposed AT-1 issuance is expected to further strengthen the Bank’s capital position and provide additional headroom to support its business growth while maintaining a strong capital base and financial resilience.