Union Bank of India to raise up to Rs 1500 crore

The PSU Bank on Friday (11 December) announced it will issue basel-III compliant bonds to raise up to Rs 1,500 crore.

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

The coupon on the bonds is fixed at 8.73% per annum and have a face value of Rs 10 lakh per bond. The bonds are rated IND AA/ Stable by India Rating & Research and BWR AA/Negative by Brickwork Rating India.

The Government of India held 89.07% stake in Union Bank of India as on 30 September 2020. The bank has a network of 9590 branches and 13,287 ATMs across the country.

Union Bank of India reported a standalone net profit of Rs 516.62 crore in Q2 FY21 as against a net loss of Rs 1,193.61 crore in Q2 FY20. Total income during the quarter jumped 90.3% YoY to Rs 20,084.10 crore.

Shares of Union Bank rose 1.53% at Rs 33.20 on Friday.

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