Money & Banking

Union Bank to issue AT-1 bonds to raise up to ₹1,000 crore

Our Bureau. Mumbai | Updated on January 07, 2021 Published on January 07, 2021

Union Bank of India (UBI), on Thursday, said it will issue Basel III-compliant Perpetual Debt lnstruments, in the nature of Debentures eligible for inclusion in Additional Tier 1 Capital, aggregating up to ₹1,000 crore.

The issue size of the public sector bank’s Basel III-Compliant Additional Tier I Bonds will be ₹300 crore, with a green shoe option of up to ₹700 crore, UBI said in a regulatory filing.

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

As per the Term Sheet, the bank can exercise call option with prior approval of the Reserve Bank of India, subject to conditions mentioned in the sheet, on the fifth anniversary from the deemed date of allotment or any allotment anniversary date thereafter

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Published on January 07, 2021
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