Canara Bank raises ₹3,500 crore via AT1 bonds at 7.55% coupon

successfully raised the full ₹3,500 crore through its Additional Tier 1 (AT1) bonds—the first such issuance by any bank this fiscal—after receiving bids of around ₹6,000 crore against a base size of ₹1,000 crore and a green shoe option of ₹2,500 crore. Priced at a 7.55% coupon, the strong oversubscription reflects investor appetite for higher yields ahead of the RBI's December monetary policy, where a further 25 bps repo rate cut to 5.25% is anticipated amid record-low inflation.​ Market context * This follows recent issuances like 's ₹3,945 crore at 7.40% for 15-year bonds and 's ₹5,000 crore at 7.25% for 10-year paper, signaling banks' rush to lock in funding before potential rate softening.​ * AT1 bonds help bolster Tier 1 capital ratios, supporting credit growth while offering investors perpetual-like instruments with call options.​ The move underscores proactive capital management across PSU and private banks amid easing monetary conditions. Source: The Economic Times No Recommendations