Money & Banking

Union Bank to raise ₹1,000 crore via Basel III compliant Tier II Bonds

Our Bureau Mumbai | Updated on November 24, 2020 Published on November 24, 2020

Union Bank of India (UBI) on Tuesday said it will be issuing Basel III compliant Tier II Bonds in the nature of Debentures aggregating an issue size not exceeding ₹1,000 crore.

The issue will have a base size of up to ₹500 crore and a green shoe option to retain oversubscription up to ₹500 crore.

The instruments (Unsecured, Non-Convertible, Taxable, Subordinated, . Redeemable, Fully Paid-Up) are of face value of ₹10 lakh each and carry a coupon rate of 7.18 per cent, UBI said in a regulatory filing.

The Bank can exercise call option with prior approval of RBI on the 10th anniversary from the deemed date of allotment or any allotment anniversary date thereafter. The pay-in date/deemed date of allotment will be November 26, 2020.

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Published on November 24, 2020
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