Canara Bank and Bank of Maharashtra are set to raise $500 million each through U.S. dollar-denominated bonds over the next few days, according to The Economic Times. Both lenders will issue three-year or five-year papers, or a combination of both, under the central bank's concessional swap window. This move aims to lower the cost of hedging currency exchange rate risks for the banks. Bank of Maharashtra is making its debut issuance, while Canara Bank has issued before, with both debt sales anticipated to be completed during the month of September.
Canara Bank has received strong credit ratings from India Ratings and Research, with the Issuer Rating reaffirmed at IND AAA/Stable. The bank's Basel III AT1 Bonds worth ₹4,500 crore have been assigned an IND AA+/Stable rating, while Infrastructure Bonds worth ₹10,000 crore maintain their IND AAA/Stable rating. Additionally, Basel III Tier 2 Instruments worth ₹9,500 crore and Basel III AT1 Bonds worth ₹12,000 crore have both been reaffirmed at IND AAA/Stable rating. These ratings provide strong foundation for the bank's upcoming international fundraising initiatives.
The board of Canara Bank at its meeting held on 03 September 2026 has approved raising of foreign currency funds through issuance of Senior Unsecured Foreign Currency Bonds (Fixed Rated / Floating Rated). According to reports from Business Standard, the bank plans to raise funds up to USD 2,000 million in the international market under the existing USD 3 billion Medium Term Note (MTN) Programme. In July 2026, Canara Bank had successfully raised $200 million via private placement under the central bank's concessional swap window, at a spread of 87 basis points over the corresponding U.S. Treasury yields, marking its first such issuance since September 2024.
Indian lenders have already raised $13 billion through dollar bonds so far in 2026, with $12.15 billion raised in June to August after the Reserve Bank of India announced the concessional swap window. According to The Economic Times, State Bank of India, Bank of Baroda and Union Bank of India are among other lenders that have tapped the dollar debt market in 2026. Bank of Maharashtra's $500 million medium-term note programme has been assigned a 'BBB-minus' rating by Fitch Ratings, and the bank will use the net proceeds to meet funding requirements of its head office in India, foreign offices and general corporate purposes.
