United Bank plans to raise Rs 300 cr from bonds
The fund raised would result in augmentation of its Tier I capital, it said
United Bank of India today said it proposes to raise Rs 300 crore from bonds to fund its business growth.
The bank has finalised the issue of unsecured, non-convertible, perpetual debt instrument of Rs 1 lakh each at par for an amount of Rs 200 crore with a green shoe option of another Rs 100 crore on private placement basis, United Bank of India said in a filing on the BSE.
The fund raised would result in augmentation of its Tier I capital, it said.
The state-owned bank has fixed a coupon rate of 9.27% per annum, it added.
The government of India holds 81.56% stake in the Kolkata-based bank.
Shares of the bank closed at Rs 75.30 apiece, up 0.94% on the BSE.