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Union Bank of India to raise Rs 1,000 cr via bonds

Capital Market 

Union Bank of India on Thursday said it will raise Rs 1,000 crore by issuing Basel III-compliant bonds on a private placement basis.

Union Bank of India will issue Basel III compliant perpetual debt instruments in the nature of debentures eligible for inclusion in additional tier 1 capital series XXVIII of Rs 300 crore with green shoe option up to Rs 700 crore (maximum Rs 1,000 crore) on private placement basis.

The face value of the bonds, which carry a coupon rate of 8.64% per annum, is Rs 1 crore per bond. The pay-in date/ deemed date of allotment of the bonds is 11 January 2021. The bonds will be listed on the NSE.

Union Bank of India reported a standalone net profit of Rs 516.62 crore in Q2 FY21 as against a net loss of Rs 1,193.61 crore in Q2 FY20. Total income during the quarter jumped 90.3% Y-o-Y (year-on-year) to Rs 20,084.10 crore in Q2 FY21.

Shares of Union Bank of India rose 0.47% to Rs 32.05. The Government of India held 89.07% stake in Union Bank of India as on 30 September 2020. The bank has a network of 9,590 branches and 13,287 ATMs across the country.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, January 08 2021. 10:26 IST