Union Bank of India is issuing Basel Ill Compliant Debt Instruments in the nature of Debentures eligible for inclusion in Tier-2 Capital (Bonds) Series XXXl of Rs 500 crore with Green Shoe Option up to Rs 650 crore (maximum Rs 1,150 crore) on Private Placement basis. It will allot the bonds on July 9, 2021. The redemption date is set as July 9, 2036. The bonds with tenor of 15 years carry coupon rate of 7.25 per cent per annum.
To comply with Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.
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.
