The bank is issuing Basel III compliant perpetual debt instruments in the nature of debentures on private placement basis, Union Bank of India said in a regulatory filing.
From the issue size of Rs 200 crore with green shoe option up to Rs 300 crore, the bank said it has accepted bids of Rs 205 crore.
The coupon on the bonds is fixed at 8.73 per cent per annum to be payable annually. The date of allotment of bonds is January 29, 2021.
Perpetual bonds and those instruments that carry no maturity date and hence may be treated as equity, not as debt.