Union Bank of India has raised Rs 750 crore by issuing 7,500 non-convertible, unsecured subordinated Basel III compliant perpetual debt instruments for inclusion in additional tier-I capital. The bond is issued for face value of Rs 10 lakh each at par aggregating to Rs 750 crore on private placement basis. They are rated ‘AA+/Stable’ by Brickwork Rating and ‘AA’ by India Ratings. The bonds, issued on a private placement basis, bears interest rate of 9.10% per annum payable annually.
Union Bank of India is one of the largest government-owned banks of India. The Bank offers products and services in three categories – Deposits, Loans and Advances, and Remittances & Collections. Its segments include treasury operations, corporate & wholesale banking, retail banking and other banking operations.