Union Bank of India is issuing Basel III compliant perpetual debt instruments in the nature of debentures eligible for inclusion in additional tier I capital of Rs 500 crore with green shoe option up to Rs 1,000 crore (maximum of Rs 1,500 crore) on private placement basis. Perpetual bonds carry no maturity date and hence may be treated as equity, not as debt. The coupon on the bonds is fixed at 8.73 percent per annum.
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.
