Union Bank raises Rs 500cr to augment capital under Basel III

The state owned lender Union Bank has raised Rs 500 crore by issuing Basel III compliant bonds on private placement basis.
The bank has issued 5,000 non-convertible, unsecured subordinated Basel III compliant perpetual debt instruments to be added into additional tier I capital, the bank said in a regulatory filing.
"The bond is issued for face value of Rs 10 lakh each aggregating to Rs 500 crore on private placement basis bearing 9.10 per cent per annum coupon payable annually," Union Bank said.
Bonds are rated BWR AA+/Stable by Brickwork Rating and IND AA by India Ratings.
The globally accepted Basel III banking regulations came to being post 2008 global sub-prime economic crisis to make banks ready to deal such occurrences by strengthening their capital base.

Implemented in phases in India since April 2013, banks here are expected to be fully compliant with these norms by March 2019, falling slightly short of the internationally agreed January 2019 deadline.
Stock of Union Bank closed 0.64 per cent up at Rs 156.10 on BSE.