Perpetual bond:
Canara Bank issued India’s first Additional Tier I perpetual bonds since recent rule changes, attracting strong investor interest with a lower-than-expected coupon of 8.27%.This marks a revival in demand for these bonds, which had declined due to regulatory challenges. The Securities and Exchange Board of India’s (SEBI) recent valuation tweak, allowing mutual funds to value these bonds based on the call option, has made them more attractive.
