Union Bank Issues Tier II Bonds

IAS Prelims 2023

Union Bank of India has issued 10,000 Basel III Compliant Tier II Bonds of face value Rs.10,00,000/- each at par aggregating to Rs.1000 crore on private placement basis, bearing 8% p.a. coupon payable annually.

The Bonds are issued for a period of 10 years, with call option after 5 years and thereafter on all coupon payment dates.

The Bonds are rated “CRISIL AAA/Outlook: Negative” and “BWR AAA/Outlook: Negative” by ‘CRISIL Ltd’ and ‘Brickwork Ratings India Pvt. Ltd.’ respectively.