The base size of the issue, which is the second tranche, is Rs 500 crore with an option to retain oversubscription of up to Rs 500 crore, the company said in a statement Tuesday.
The MTNs are also known as bonds in the overseas markets. The issue would close on April 3. The funds raised through this issue will be used for capital expenditure by the company.
The bonds with a face value of Rs 10 lakh each bears a coupon rate of 9.45 per cent per anum payable annually with call option after 5 years or any anniversary date thereafter, it said.
Canara Bank said the bonds are priced at 5-year US Treasury plus 170 basis points carrying a coupon of 3.875 per cent fixed payable half yearly.
'The board of directors, at its meeting held on Tuesday, (March 19, 2019), has approved rupee bond borrowing limit of Rs 4,000 crore to be borrowed in one or more tranches,' the bank said in a regulatory filing.
The unsecured, redeemable, non-cumulative, non-convertible, taxable bonds will be issued in one or more tranches on a private placement basis in the domestic market, it added.
The company raised a total of Rs 2,228.06 crore worth of subscriptions which is 4.45 times of the base issue size (Rs 500 crore).
The five-year non-call two notes were offered at a yield of 6.67 per cent per annum, a company statement said.
The funds raised will be used by the bank to support Indian project exports, foreign investment by way of long-term credit and its line of credit portfolio
The source also informed that the EPFO has also written to the ministries of corporate affairs and finance to protect the body in this situation as its investment is nearly Rs 574 crore in IL&FS bonds.
Shadow bankers depend on the bond market to raise short -term capital for on-lending, and they go to banks for long-term finance.
While the provision was aimed at incentivising FPIs to maintain a portfolio of assets, market feedback indicates that foreign portfolio investors (FPIs) have been constrained by this stipulation, the RBI said.
The base size of the issue of Rs 100 crore, with an option to retain oversubscription up to Rs 650 crore.
A long pause in Asian central bank tightening could facilitate more inflows into Asian bonds and offer some respite to smaller-sized, low margin borrowers across south and southeast Asia.
PFC, an infrastructure finance company, is engaged in providing financial assistance to state power utilities for meeting the financing and development requirements of the power sector.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.05 percent in early trade while Japan's Nikkei fell 0.45 percent.
China has also seen a spike in corporate defaults this year, stirring worries about rising credit risks in money markets.
IL&FS Transportation Networks, part of the IL&FS Group, today said its board has given nod for issuance of masala bonds worth up to Rs 2,000 crore besides USD-denominated bonds of up to USD 500 million.
Watch the interview of Ananth Narayan, Market Expert with Latha Venkatesh of CNBC-TV18, where he spoke about the Reserve Bank of India (RBI) cancelling the sale of 5-year and 15-year bond scheduled for December 29.