Union Bank of India plans to raise Rs 1,500 crore through AT1 bond

The bank had capital adequacy ratio of 13.92 per cent with tier I of 11.75 per cent at end of December 2021

Union Bank of India is looking to raise up to Rs 1,500 crore in capital through tier-I bonds and another Rs 1,100 crore via Indian Renewable Energy Development Agency (IREDA) via medium-term bonds in the coming week.

Debt market sources said Union Bank has indicated that its offering for AT bonds will have an issue size of Rs 500 crore with green shoe option of Rs 1,000 crore.

CRISIL Ratings has assigned “AA/stable” to tier-I bonds of Union Bank. The overall ratings continue to reflect the expectation of strong support from the majority stakeholder, Government of India (GoI)