Union Bank of India to allot Basel III bonds of Rs 2,000 cr next week
The bank has considered the issuance of Basel III compliant debt instruments in the nature of debentures of Rs 500 crore, with green shoe option up to Rs 1,500 crore (maximum Rs 2,000 crore) on private placement basis, the bank said in a regulatory filing
Union Bank of India on Thursday said it will allot Basel III compliant bonds next week on a private placement basis, for which it has accepted bids worth Rs 2,000 crore.
The bank has considered the issuance of Basel III compliant debt instruments in the nature of debentures of Rs 500 crore, with green shoe option up to Rs 1,500 crore (maximum Rs 2,000 crore) on private placement basis, the bank said in a regulatory filing.
See Zee Business Live TV Streaming Below:
The bonds are eligible for inclusion in additional tier I capital, it said.
The bonds, with face value of Rs 1 crore each, are perpetual in nature and bear coupon of 8.70 per cent per annum. Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt.
The deemed date of allotment of bonds is November 22, 2021, the state-owned lender said. The bonds are rated 'AA'/stable by India Ratings & Research and Crisil.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.