Union Bank, a public sector lender, said that it will raise up to Rs 1,500 crore through a private offering of Basel III compliant bonds. The bond offer’s basic issue size is Rs 500 crore, with a greenshoe option of up to Rs 1,000 crore, aggregating up to Rs 1,500 crore, according to a regulatory filing from the state-run bank. The perpetual bonds, which have an annual coupon rate of 8.50 percent, are suitable for inclusion in extra Tier-I capital. The allocation date has been set for March 2, and the bonds are expected to be listed on the National Stock Exchange.
