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State-run Canara Bank to raise up to $1.2 bn via debt, equity
Photo Credit: VCCircle

State-run Canara Bank said on Friday it will raise up to Rs 9,000 crore ($1.2 billion) in debt and equity funding this financial year.  

Of the total sum, Rs 2,500 crore will be raised in equity by Qualified Institutional Placement (QIP), Rs 4,000 crore in debt through additional Tier I Basel III compliant bonds, and another Rs 2,400 crore in debt by issuing additional Tier II Basel III compliant bonds, the Press Trust of India reported. It was not specified how the remaining Rs 100 crore will be raised. 

The bank said the debt instruments will be issued subject to market conditions and necessary approvals. 

Canara Bank was founded by Ammembal Subba Rao Pai in 1906. It became the fourth largest public sector bank in India after merging with Syndicate Bank in April last year.  

Canara Bank’s stock price closed 5.37% higher at Rs 161.8 on the BSE on Friday.  

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