India New Issue-Union Bank accepts bids for 10-year, 15-year bonds - traders

CARE Ratings

28/11/2022 09:58

MUMBAI, Nov 28 (Reuters) - Union Bank of India  UNBK.NS 
has accepted bids worth 22 billion rupees ($269.56 million) for
two Basel III-compliant Tier II bonds, one maturing in 10 years
and the other in 15 years, four merchant bankers said on Monday.
    The state-run bank has set a coupon of 7.85% on bonds
maturing in 15 years and accepted bids worth 15 billion rupees,
while it also set a coupon of 7.80% on 10-year paper and
accepted bids worth 7 billion rupees. The lender had invited
bids for both the bonds earlier in the day. 
    The notes are rated AA+ by CARE Ratings and ICRA, and will
close for subscription on Tuesday. 
    The 10-year bonds will have a call option at the end of five
years, while the 15-year papers will have it by 10 years.
    In February, the bank had raised 15 billion rupees through
Basel III compliant additional Tier I perpetual bonds at an
annual coupon of 8.50%. The issue had a call option at the end
of five years.
    ($1 = 81.6150 Indian rupees)
 (Reporting by Bhakti Tambe)
 ((Bhakti.Tambe@thomsonreuters.com;))