te This bank to mop up Rs 1,320 cr by issuing bonds | Zee Business

This bank to mop up Rs 1,320 cr by issuing bonds

The fund raised will be eligible to be included as additional tier-I capital of the bank

This bank to mop up Rs 1,320 cr by issuing bonds
Perpetual bonds carry no maturity date and they are often considered a type of equity, not debt. Photo credit: PTI

 Union Bank of India on Friday said it will raise Rs 1,320 crore next week by issuing bonds on a private placement basis.

The bank said it has accepted bids of Rs 1,320 crore in an issue of Rs 2,100 crore with a base issue size of Rs 600 crore and a green shoe option to retain oversubscription up to Rs 1,500 crore.

The unsecured, subordinated, taxable, non-convertible, perpetual, fully paid-up Basel III compliant additional tier I bonds in the nature of debentures will carry coupon at 8.69 per cent per annum, the state-owned lender said in a regulatory filing.

TRENDING NOW

The fund raised will be eligible to be included as additional tier-I capital of the bank, it said.

Perpetual bonds carry no maturity date and they are often considered a type of equity, not debt. Even as such bonds are not redeemable, they pay a steady flow of interest forever.

The bank said it will allot bonds to the allottees on July 25, 2022.

Crisil Ratings and India Ratings & Research have rated these bonds as high investment grade AA rating with a stable outlook.

 

 

Reported By: PTI
Updated: Fri, Jul 22, 2022
07:12 pm
New Delhi, PTI
RELATED NEWS
Union Bank of India to raise up to Rs 5,000 crore through QIP Union Bank of India to raise up to Rs 5,000 crore through QIP
Q3 Results 2023: LTIMindtree, DCM Shriram, Union Bank, Bandhan Bank declare December quarter results - HIGHLIGHTS Q3 Results 2023: LTIMindtree, DCM Shriram, Union Bank, Bandhan Bank declare December quarter results - HIGHLIGHTS
PSU Bank stocks in focus: These 3 state-owned banks from mid-cap section gain most in October – analysts cite reasons behind rally? PSU Bank stocks in focus: These 3 state-owned banks from mid-cap section gain most in October – analysts cite reasons behind rally?
Govt appoints Srinivasan Varadarajan as non-executive chairman of Union Bank Govt appoints Srinivasan Varadarajan as non-executive chairman of Union Bank

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x