Union Bank raises Rs 600cr via bond issues

Union Bank of India has raised additional capital of Rs 600 crore through tier-I and II bond issues to meet Basel II norms and support business growth.

The public sector bank raised Rs 200 crore through perpetual tier-I bonds. Tier-I bonds carry a coupon rate of 9.90% with step-up option of 50 basis points at the end of 10th year.

It also raised Rs 400 crore via lower tier II bonds which have tenure of 10 year and 4 months. These bonds carry a coupon rate of 9.35%, it added.

Both the issues opened on December 06 and closed on December 08, well before the scheduled closing date of December 11, 2007. The bank's capital adequacy at the end of September 2007 stood at 11.56%.