Canara Bank has raised ₹1,500 crore in Basel III-compliant Additional Tier 1 (AT1) bonds at a coupon rate of 8.40% per annum. This was the first AT1 bond issuance by the bank post the new SEBI regulations.

The issue received overwhelming response from investors, with bids for more than ₹3,400 crore against a base issue size of ₹500 crore. Based on the response, the bank has decided to accept ₹1,500 crore at a coupon rate of 8.40% per annum, according to a statement from the bank on October 25.

The AT1 instrument is perpetual in nature. However, it can also be called back by the issuer after five years or any anniversary date thereafter, as per a Canara Bank communique.

The bank’s AT1 bonds have been rated AA+ by CRISIL and AA by India Ratings & Research.