Canara Bank’s $400 million bond issue has hit the overseas market. The issue is part of its $2-billion medium term note programme. The Bengaluru-based bank has hit the forex debt market after a long gap.
Foregin rating agency Moody’s has assigned a Baa3 rating to the issue, which is on par with the sovereign rating, since the bank is majority owned by the government. Moody’s said the proposed senior unsecured notes are being issued under its $2-billion medium-term note programme. On the Baa3 rating rationale, Moody’s said the bank’s foreign currency senior unsecured MTN debt rating is anchored on its Ba3 baseline credit assessment and the agency’s assessment of the likelihood of a very high level of government support in a stressed situation.
Canara Bank is an Indian state-owned bank headquartered in Bangalore, in Karnataka. It was established at Mangalore in 1906, making it one of the oldest banks in the country.
