State-run Canara Bank has raised Rs 1,000 crore in Basel III-compliant additional tier I, series III bonds, at a coupon rate of 8.07% per annum.

The issue received an overwhelming response from investors, with bids for more than Rs 3,133 crore against a base issue size of Rs 250 crore and a greenshoe option of Rs 750 crore, Canara Bank said on Friday. 

Based on the response, the bank has decided to accept Rs 1,000 crore at a coupon rate of 8.07% per annum.

“The said tier I bonds are perpetual in nature. However, it can be called back by the issuer after the fifth anniversary from the deemed date of allotment or any anniversary date thereafter," it said.

The bank’s additional tier I bonds are rated AA+ by Crisil Ratings, and India Ratings and Research Ltd.

This is the third series of additional tier I bond issuance of the bank for the financial year 2021-22. During FY22, the bank has raised  Basel  III  compliant  additional  tier  I  bonds of Rs 4,000 crore and tier-II bonds of Rs 2,500 crore.