Pricing of USD 300 Million 4.896% Fixed Rate Senior Unsecured Dollar Bonds of 5 Year Tenor by Canara Bank

BENGALURU:
Canara Bank, acting through its IFSC Banking Unit announced that it has successfully priced USD 300 million 5-year bonds issued off its USD 3 billion MTN Programme. Proceeds of the bonds will be applied by the Issuer’s IFSC/GIFT Banking Unit towards the general corporate purposes of Issuer’s IFSC/GIFT Banking Unit or any other offshore branch of the Issuer, to meet the funding requirements, and to develop and expand the Issuer’s businesses in the Issuer’s IFSC Banking Unit or any other offshore branch of the Issuer.

This is Canara Bank’s return to the international bond market after a break of 5 years. The last benchmark sized bond was priced at T+170 bps in 2019 which matured on 28 March 2024. The new 5-year benchmark priced at T+125 bps and has a semi-annual coupon of 4.896% per annum and a maturity date of 11 September 2029. The transaction saw an oversubscription of more than 2.5 times with active participation from quality accounts.

Commenting on the occasion, K. Satyanarayana Raju, MD & CEO, Canara Bank said, “We are delighted on the successful launch and pricing of this transaction, which enabled us to achieve a 30-bps tightening from the initial price guidance to final price guidance. The issuance was widely subscribed by investors across Asia, Middle East and Europe demonstrating the strong confidence in the Canara Bank’s credit. This achievement underscores the trust and confidence that investors has placed in our institution.”

Canara Bank conducted a 2-day physical roadshow in Singapore and Hong Kong covering fixed income investors across Asia and a virtual roadshow for investors in EMEA. The transaction evidences strong demand and confidence from global investors towards Canara Bank’s credit. Over 72 investors participated in the transaction, with Asian investors taking up 73% of the deal and European investors being 27%. Over 41% of the deal was taken up by Fund Managers and Insurance Companies. With a peak orderbook of USD 1.2 billion, the deal tightened 30.0bps from initial price to final price, the deal marks the lowest coupon of any benchmark size USD bond issuance from India in 2024YTD and marks the tightest spread ever achieved by Canara Bank for a benchmark sized dollar issuance.

BNP Paribas, DBS Bank Ltd. and MUFG are the joint bookrunners and joint lead managers for the issue.