Union Bank to raise funds up to Rs 10,100 crore via QIPs and Bonds

Public Sector Bank (PSB) Union Bank on Wednesday said that its board has approved a capital plan of the bank under which it will be raising capital of up to Rs 10,100 crore.

According to the lender, the capital will be raised via Public Issue and Basel III compliant Additional Tier 1 (AT 1) Bonds and/or Tier 2 bonds.

Union Bank will be raising up to Rs 8,000 crore in tranche(s) within the overall limit of Rs 10,100 crore, through Public Issue (i.e. Further Public Offer) and/or Rights Issue and/or Private Placements which includes Qualified Institutions Placements (QIP). This mode of fund raise is subject to approval of government of India, other regulatory authorities and approval of Shareholders’ of the Bank.

Also read: Bank of Baroda to raise up to $7 billion via Bonds & Certificate of Deposits

The bank will be raising up to Rs 2,100 crore within the overall limit of Rs 10,100 crore via Basel III compliant Additional Tier 1 (AT 1) Bonds and/or Tier 2 bonds, which includes foreign currency denominated AT1/Tier 2 Bonds).

Shares of Union Bank were trading at 74.80 per share, up 1.3 percent, at 2:30 pm on NSE.

Also read: HDFC Bank to raise Rs 50,000 crore via bonds over next 12 months