Canara, Union Bank to raise around Rs 4,000 cr via AT-1 bonds by next week

Union Bank plans to raise up to Rs 2,000 crore while Canara Bank plans to issue AT-1 bonds worth up to Rs 2,000 crore, say sources

State-owned lenders Union Bank of India and Canara Bank plan to raise a total of around Rs 4,000 crore through the issuance of Additional Tier-1 (AT-1) bonds by early next week, sources told Business Standard.

Union Bank plans to raise up to Rs 2,000 crore while Canara Bank plans to issue AT-1 bonds worth up to Rs 2,000 crore, the sources said.

“They (Union Bank) had a meeting at the end of last week – an arranger meeting. They have taken a rating for Rs 2,000-crore bonds,” a treasury official aware of the developments said.

“Union Bank is open