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.
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. PTI KPM KPM BAL BAL
To stay updated with the Latest Stock Market news, download our app here !
For editorial purposes, contact news@tradebrains.in
Start Your Financial Learning Journey
Want to learn Stock Market and other Financial Products? Make sure to check out, FinGrad, the learning initiative by Trade Brains. Click here to Register today to Start your 3-Day FREE Trail . And do not miss out on the Introductory Offer!!
