Union Bank likely to sell tier-2 bonds worth Rs 2,000 crore next week

Tier-2 bond sale plan comes amid sharp decline in bond yields

Public sector lender Union Bank of India is likely to issue tier-2 bonds worth Rs 2,200 crore next week in order to raise capital and fund strong demand for credit, sources told Business Standard.

The state-owned bank’s planned bond issuance comes amid a recent decline in yields on government bonds and consequently corporate debt. Lower bond yields imply cheaper access to debt for the entity looking to raise funds.

Union Bank’s proposed bond issuance is rated AA+ by CARE and Icra and has a tenure of 10 years with a call option after five years, the sources said. The date