United Bank plans to raise Rs 300 cr from bonds

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.