UCO Bank raises Rs 750 cr to prop up tier I capital

State-owned UCO Bank has raised Rs 750 crore by allotting perpetual bonds on private placement to shore up its tier-I capital.
"The Bank has raised non-convertible, unsecured subordinated fully paid-up Basel III compliant perpetual debt instruments eligible for inclusion in additional tier-I (AT 1) capital of Rs 750 crore through private placement," it said in a regulatory filing.
Perpetual bonds are treated as equity, not debt as they carry no maturity date.
Earlier in October, the Kolkata-based lender had informed that it raised funds by issuing 7.17 crore shares to LIC on a preferential basis, the issue price of which was yet to be determined.

In August the bank received capital infusion of Rs 775 crore from the government in lieu of issuing preferential shares to it.
UCO Bank stock closed 2.53 per cent down at Rs 32.75 on BSE.