Latest News | Union Bank of India to Raise Up to Rs 1,500cr

New Delhi, Dec 11 (PTI) State-run Union Bank of India on Friday said it will issue Basel-III compliant bonds to raise up to Rs 1,500 crore.

"The bank is issuing Basel III compliant perpetual debt instruments in the nature of debentures eligible for inclusion in additional tier I capital of Rs 500 crore with green shoe option up to Rs 1,000 crore (maximum of Rs 1,500 crore) on private placement basis," it said in a regulatory filing.

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Perpetual bonds carry no maturity date and hence may be treated as equity, not as debt.

The coupon on the bonds is fixed at 8.73 per cent per annum.

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The bonds are rated IND AA/ Stable by India Rating & Research and BWR AA/Negative by Brickwork Rating India.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)