Financial Daily from THE HINDU group of publications
Saturday, Feb 25, 2006
Financial Daily from THE HINDU group of publications Saturday, Feb 25, 2006 |
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Money & Banking
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Corporate Bonds Canara Bank bond oversubscribed Our Bureau
The bank had priced its issue at 8.15 per cent. The pricing was for a tenure of 9 years and 2 months. This is straight security with a bullet redemption on maturity. It has no early exit options. The pricing was about 75 basis points above the 9-year benchmark security, the 7.38 per cent 2015 G-Sec. The bank had initially targeted to raise Rs 300 crore with an option to retain Rs 125 crore in the event of oversubscription. The bonds were raised for reinforcing the bank's capital. Canara Bank is a AAA- rated public sector bank. Bankers said that this pricing now becomes a benchmark for AAA-rated securities. Corporation Bank is also waiting to raise tier two bonds amounting to Rs 500 crore, inclusive of the green shoe option.
More Stories on : Corporate Bonds | Public Sector Banks
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