Union Bank of India to raise up to Rs 1,500 cr

State-run Union Bank of India on Friday said it will issue Basel-III compliant bonds to raise up to Rs 1,500 crore.

"The bank is issuing Basel III compliant perpetual debt instruments in the nature of debentures eligible for inclusion in additional tier I capital of Rs 500 crore with green shoe option up to Rs 1,000 crore (maximum of Rs 1,500 crore) on private placement basis," it said in a regulatory filing.

Perpetual bonds carry no maturity date and hence may be treated as equity, not as debt.

The coupon on the bonds is fixed at 8.73 per cent per annum.

The bonds are rated IND AA/ Stable by India Rating & Research and BWR AA/Negative by Brickwork Rating India.