Union Bank of India raises Rs 1,000 cr via AT1 bonds

16 September, Mumbai

Public Sector Lender Union Bank of India said that it has raised Rs 1,000 crore by issuing additional tier-I (AT1) bonds.

“The Bank has has on September 15, 2016issued 10,000 non-convertible, unsecured subordinated Basel III compliant perpetual debt instruments eligible for inclusion in additional tier 1 (AT1) capital,” the bank said in a filing with BSE.

The bonds are issued for face value of Rs 10 lakh each at par aggregating to Rs 1,000 crore on private placement basis bearing 9.50 per cent per annum coupon payable annually, it added.

The AT1 bonds are rated ‘IND AA’ by India Ratings and CARE AA by Credit Analysis & Research Ltd (CARE).