Union Bank raises Rs 800 crore through tier-II bonds

Mumbai: Union Bank on Friday said it has raised Rs 800 crore through issuance of lower tier-II bonds.

"We have raised additional capital to the extent of Rs 800 crore by issue of unsecured redeemable non-convertible subordinated lower tier II Bonds," the bank said in a release.

The 10-year bonds have a fixed coupon rate of 8.90 percent per annum payable annually, it added.

Earlier, the bank had announced that it has received an enabling resolution from its board to raise up to Rs 1,500 crore through bonds over the next three months.

State-run Union Bank posted 57 percent jump in net profit to Rs 554 crore during the second quarter of current financial year.

Shares of the bank closed 1.37 percent up at Rs 274.15 on BSE today.

PTI