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Union Bank raises Rs 800 cr through tier-II bonds

The 10-year bonds have fixed coupon rate of 8.90% per annum payable annually

Last Updated : Jan 20 2013 | 6:57 AM IST

Union Bank today said it has raised Rs 800 crore through issuance of lower tier-II bonds.

"We have raised additional capital to the extent of Rs 800 crore by issue of unsecured redeemable non-convertible subordinated lower tier II Bonds," the bank said in a release.

The 10-year bonds have a fixed coupon rate of 8.90% per annum payable annually, it added.

Earlier, the bank had announced that it has received an enabling resolution from its board to raise up to Rs 1,500 crore through bonds over the next three months.

State-run Union Bank posted 57% jump in net profit to Rs 554 crore during the second quarter of current financial year.

Shares of the bank closed 1.37% up at Rs 274.15 on the BSE today.