Union Bank likely to sell Rs 780 cr of AT-1 bonds as lenders seek capital

Lenders, particularly state-owned, turn to debt capital markets to finance hefty demand for loans

State-owned Union Bank of India is likely to tap debt capital markets by issuing additional tier-1 (AT-1) bonds to raise up to Rs 780 crore, sources told Business Standard.

Bidding for Union Bank’s AT-1 bonds will likely be on December 21, sources said, adding that the base size of the debt sale was Rs 200 crore with a greenshoe option of Rs 580 crore.

With credit growth continuing to outstrip deposit growth, banks have turned to debt capital markets over the last few months in order to finance the hefty demand for loans.

State-owned banks have shown renewed interest in