Union Bank board approves raising additional funds of Rs. 10,000 crore via bonds

Public sector lender Union Bank of India said, on June 11, that its board has approved its proposal of raising funds up to Rs. 10,000 crore.

As per the lender, the capital will be raised via public issue and Basel III complaint Additional Tier 1 (AT) Bonds and/or Tier 2 bonds.

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Union Bank will be raising up to Rs. 6,000 crore in trance (s) within the overall limit of Rs. 10,000 crore, which will be through public issue, rights issue, or private placements including qualified institutions placements (QIP). This mode of fundraise will be subject to the approval of government of India, other regulatory authorities and approval of shareholders’ of the bank.

The additional funds of Rs. 10,000 also includes the Rs. 4,000 crore, which shall be raised via Basel III compliant Additional Tier 1 (AT 1) Bonds and Tier 2 Bonds, which includes foreign currency denominated AT1/Tier 2 Bonds.