Union Bank of India raises ₹3,000 crore for infrastructure and affordable housing loans

State-run Union Bank of India has said that it raised ₹3,000 crore in the form of long term bonds (infrastructure and affordable housing) of tenor 10 years.

The bank had approached the debt markets with a base issue size of ₹3,000 crore and a greenshoe option of (the option to collect upto) ₹4,500 crore.

The bank received bids totalling ₹9,379.82 crore with the issue oversubscribed by over three times. Of 48 bids received, the bank has accepted 14 bids totalling ₹3,000 crore, at a cut-off coupon rate of 7.16 per cent per annum.

The bonds are senior, rated, listed, unsecured, redeemable, taxable, transferable, long term, fully paid-up and non-convertible.

The bank has said that the funds raised are not meant for financing any particular project. It will instead utilise the proceeds to enhance or augment long-term resources that fund infrastructure and affordable housing in India.