Union Bank of India Unveils Ambitious Fundraising Plans with Green Bonds

Union Bank of India announced a major fundraising initiative involving long-term and green bonds, aiming to generate up to Rs 25,000 crore for infrastructure and housing developments by 2026. The bank plans to issue bonds in multiple tranches, with a portion expected to be raised in the current fiscal year.

In a significant move to bolster funding for infrastructure and affordable housing, Union Bank of India has disclosed plans to issue an array of long-term and green bonds. The Committee of Directors for fundraising has given the nod to raise a total of Rs 20,000 crore through the issuance of long-term bonds. These funds are set to support infrastructure projects and affordable housing initiatives, marking a substantial investment in the nation's development.

The bank aims to explore part of this financing within the current financial year, concluding by March 31, 2026. The initiative outlines a plan to raise Rs 7,500 crore, combining a base issue of Rs 3,000 crore with an additional Rs 4,500 crore flexibly available through a green shoe option. This strategic move demonstrates Union Bank's commitment to fostering growth in key sectors.

Furthermore, the bank's committee has approved a plan to raise up to Rs 5,000 crore through the issuance of green or sustainable bonds in several tranches. These decisions were finalized during a meeting by the Committee of Directors held on March 16, 2026. This move underscores the bank's forward-looking approach as it embraces sustainable financial practices amid growing environmental concerns.

(With inputs from agencies.)