Union Bank of India has raised Rs 750 crore by issuing Basel III compliant bonds. The bank has issued 7,500 non-convertibles, unsecured subordinated Basel III compliant perpetual debt instruments for inclusion in additional tier-I capital, it said in a regulatory filing.
The bond is issued for face value of Rs 10 lakh each at par aggregating to Rs 750 crore on private placement basis, it added.
Perpetual bonds carry no maturity period and can be treated as equity not as debt.
The bonds, issued on a private placement basis, bears interest rate of 9.10 per cent per annum payable annually. They are rated BWR AA+/Stable by Brickwork Rating and IND AA by India Ratings.
Indian banks are implementing these globally accepted standards in phases since April 1, 2013. They are expected to fully implement these norms by March 2019.